Do I qualify for an FHA construction loan?
I am living in an apartment in Pittsburgh. I still own a home in VA with a VA mortgage, I currently have the home rented out and have hired a property manager to take care of the process. Rent checks are direct deposited as planned.I am looking to purchase a 2-3 unit home in Pittsburgh, live in one unit and rent out the other 3. Cost would be about $300k to buy and then spend another $60k on renovations. Current base salary is $110k but I will make $10-50k on top of that in bonuses etc. Latest FICO is 641. 83% of available revolving debt available, 2 Credit inquiries will fall off on the next credit report. Monthly debt payment is $2050. by ryan_44 from , . Jul 21st 2011
Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 233 contributions
When you're asking about an FHA construction loan, are you talking about a FHA 203K renovation loan? How long have you been getting rent on the VA property. If you want to count the rent you will have had to show on tax returns for 2 years or more, otherwise you cannot count the rent income. You will also have to provide a copy of leasge agreement. Most Lenders will require you to have a 640 or above middle score, with good debt ratios.
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
This would be a 203k FHA loan- not a streamline as you are only allowed to get up to $35,000 in in renovation costs. There are limited sources for this type of 203k product. Since you have some moving parts to you income and debt with the other home I would suggest getting with a 203k specialist and letting them review all your income and taxes.
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