My husband and I are considering taking out a small second (approx $10,000) on our condo to pay the 3% downpayment required for a second home. We plan on using the FHA loan. Are we able to do this? We live in California, and lending rules are becoming very strict. Thank you in advance.Can I use a second mortgage to finance a new mortgage in California?
You cannot use the FHA programs to finance a 2nd home purchase. If what you meant is that you are taking a 2nd mortgage against a condo you own to buy a new home in California to use as your primary residence, that should be okay provided you don't have an FHA loan on your condo.
Good luck and you are right. The whole landscape of lending has changed.
Let me know if you have any other questions.
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