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Convert Primary to Second In Texas?

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ponyboy1911 Joined: 23 Apr 2010 Posts: 1 1.33 Dollars($)	Posted: Fri Apr 23, 2010 9:18 am    Post subject: Convert Primary to Second In Texas? Like 0 Dislike 0 We own one FHA home. We want to step up and purchase a larger one, but can't get another FHA unless this is sold or it's no longer and FHA loan. We can't sell it right now. In TX, we understand that we can't convert this to investment property because you have to have at least one primary to have an investment. In other words, if you only have one house, that house can't be investment. But, can we convert it to a Second Home?
jameshogg Joined: 20 Dec 2005 Posts: 10467 Location: Nevada 988.72 Dollars($)	Posted: Sat Apr 24, 2010 2:13 am    Post subject: Like 0 Dislike 0 Hi ponyboy, In my opinion, it would be a better idea to contact the Texas Real Estate Commission and take their opinion in this regard. You can find their contact details in the given page: http://www.trec.state.tx.us/agencyinfo/default.asp Thanks
jburke Joined: 09 Mar 2010 Posts: 90 Location: National 17.46 Dollars($)	Posted: Mon Apr 26, 2010 2:01 pm    Post subject: Like 0 Dislike 0 Hi Ponyboy, In order to convert your home you'd have to convert the mortgage, meaning you'd need to refinance from an FHA loan to a conventional loan. You may also qualify for one of the few FHA exceptions that would allow you to have 2 FHA insured mortgages out at the same time. You can find the exceptions here: "http://www.fhamortgagesdoneright.com/are-you-thinking-about-moving-up -and-renting-your-current-home-here-is-what-you-need-to-know/" The main issue you're likely to run in to is can you qualify for the new mortgage with your current mortgage payment included in your debt to income ratio without including rental income. Under the buy and bail guidelines, lenders will not accept a lease agreement unless you have an established history of receiving rent or 30% equity in the property. Under the FHA exceptions, these new guidelines may not apply if you qualify for one of the exceptions. [Link deactivated as per forum rules. Thanks.] _________________ John Burke Mortgage Banker FHA Loans VA Loans USDA Loans Conforming Loans

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