We have a house that we can buy on a short sale for $110,000. The house needs $60,000 worth of work. Even after this work it is a great deal for my wife and I.
We also own a home right now and have an FHA mortgage for it.
So we went out and got pre-approved on a FHA 203k loan (not the streamlined one) for this new house we want. The problem we ran into is that someone can't have two FHA mortgages at one time unless they have 25% equity in their current home (we have 5%), AND the new house must be an upgrade (which it is).
In today's market, is there an alternative? We have asked around about conventional rehab loans but keep getting told they don't exist anymore.
Thanks so much for any help!