2nd home buying

I currently own and live a townhome in chino. I am thinking to buy another one which I will move ( maybe a bit larger than the one I have) in Chino or around that area. After the purchase was done I will lease the one that I live now. Is there any bank willing to finance this type of request? what are the requirements for me to qualify for this? say DTI ratio or stuff like this... a Can I put 20% down toward this new home? 
  • January 18 2013 - Chino
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Answers (2)

Profile picture for Mike Politzer
this is very doable, and, as noted below, equity in the current property will be extremely important if you don't have enough income to cover the mortgage related debts for both properties combined. DTI limit, for conventional (not FHA) loans up to $625,000, can go as high as 50%, if you have an automated underwrite approval and a lender who will accept that finding. Otherwise, you should be fine at 45%

If you'd like to discuss this in more detail and find out exactly where you stand I invite you to contact me at your convenience.

Cheers
  • January 19 2013
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Profile picture for Mortgage Center Corp
Many lenders will do this. How much equity you have in your current home is what will make this easy or hard. If you do not have at least 30% equity you will not be able to use the proposed rental income from your current property to qualify. If you are able to cover PITI for current and new property without the rental income than you have nothing to worry about.
  • January 18 2013
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