Will I qualify for the FHA loan?

House is priced at 400K and I only have 30K for down payment (7.5%)

The house has 2 units with 3 bedrooms each.

I will be renting both the units out and the Expect Rent Income = 3,000/ month

Mortgage = 2,000/month.

Annual Income = 80K or Monthly Take Home = 4,800

Currently, I bring in 60K and my wife brings in 20 K.

I have had the same employer in the past two years, as I do now, but I haven't had a high gross annual salary on my W2's because I had taken a break for technical training.

I can show my current pay stubs and letter from my employer indicating current salary.

Both our credit scores are around 750.

Will I still qualify for the FHA loan?

6 Answers

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  • 1 decade ago
    Favorite Answer

    No, you can not use it for income property.

    You also do not earn enough.

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  • 1 decade ago

    Every thing Looks really good. But I'm afraid you have a problem.

    FHA is for owner occupied homes!

    Now I would suggest a conventional loan but that would also be problematic. You can't count rental income unless you have been a land lord for two years. Then you can only count 70% of the income after paying the mortgage. The other problem is you would need at least 10% down on investment property. If you can get the 10% plus fees together then I recommend you go talk to your local Mortgage Banker.

    Good Luck

    Source(s): Mortgage Banker 10+ Years
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  • 4 years ago

    Hi Polittle, If you don't have the down payment for an FHA loan, and can't get the first time homebuyer 2nd mtg Bob mentioned, there is another way to save up the downpayment. I have a couple of friends who did this recently. Your husband can change his paycheck tax withholding to "exempt". Then, save the extra take-home money until you have the down payment. Then, change the withholding back. Basically, you will be borrowing the down payment from the IRS. When taxes are due, you can make arrangements to pay what you owe in installments. It works out to be a really cheap loan, and the IRS is easy to deal with. This won't show on your credit report as any debt owed, as long as you don't default on your payments, which won't become due until after you file taxes next April.

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  • 1 decade ago

    I would say yes based on if you qualify as a first time home buyer in your state. With that credit score it should be pretty easy. It would be better if I knew what state you were in.

    Here in MD the minimum down payment is 3.5% of home price for first time buyers. I think it's 10% for investment properties depending on your state. Ask a local mortgage broker to give you a good faith estimate which will cost you nothing! Hope that helps and congrats on your upcoming purchase! :D

    Oops i'm sorry I looked over the part about you renting it out. If you actually live in the property as well I believe you can indeed still get and FHA loan as an Owner Occupant. But if you have no plan to live in it then absolutely not!

    Source(s): i'm a Real Estate Agent
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  • 1 decade ago

    Nope cant use FHA loans for income property

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  • LILL
    Lv 7
    1 decade ago

    No. FHA loans are NOT for investment properties. Multiple units are considered an investment.

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