Expert: Lori Frankfort - 1/11/2010

Question
I have been in my house for almost two years now which is an FHA loan for $135k the home Is to small I would love to add on to the property but with home prices dropping in SO CAL I'm looking to rent this property out and purchase a new one. Would I be able to? And would I have to put down alot of money?  Are they're any ways of me going about doing this? My fico is 740


Answer
Hi Monique,

You will need to speak directly with a mortgage broker that specializes in FHA loans to determine if you can legally rent out your FHA home and also qualify for a second home.  My educated guess is that your FHA home would need to be converted to a conventional loan before you could purchase another, because FHA requires it to be your primary.

Best of luck,
Lori Frankfort