Expert: Bobbi Buehl - 5/4/2009

Question
We were told by our FHA specialist loan officer that to be eligible for an FHA loan, we had to have home residency intention for 2 years in the house. It has been beyond that. Can we use the house as a rental house without refinancing?

Answer
Hello,

I'm not really sure what you are asking. If you are asking the question "Can we use the house as a rental house without refinancing", then yes you can. If you are asking if you can refinance another home through FHA, the answer is no you cannot.

The only way you can have two FHA loans is if you are moving to a bigger home due to a family increase (lack of room for family size), or to another town further (over, I believe 200 miles away from your current home). The move has to be job related or due to a hardship.

If you are not currently in a FHA loan, you are eligible for one regardless of how long you've been in your home! Also, if you are currently in a FHA loan, your should be doing a traditional refinance, you should be doing a Streamline refinance. That is the option that current FHA loan holders have to lower their interest rate with no out of pocket (or very little) expense and no appraisals.

Hope that helps answer your question.

Thanks, and have a great day!

Bobbi Buehl
877.928.4891