Advice needed - 2nd home purchaseMy wife and I bought our first home, a condo in the Las Vegas area, about a year ago and we stole it. Our FHA Mortgage is relatively small, $55K, so we have some equity. We made the move because owning our current home costs us 40% of what renting did. We used the savings to pay down other debts (Student Loans, CC, etc.), while saving a little bit on the side. We just had our first child, and although the condo is fairly large in sqft, we really want to start planning our next home, a home for our daughter to grow-up in and have room play in. My question is what is the best way to proceed? Ideally we would like to find a house, purchase it, and keep the condo to live in while we put some "sweat-equity" into the house. My wife's credit is excellent (730) and my credit is fair, but improving due to paying down debt (660). We both work and I know we could qualify with our debt-to-income ratio for both mortgages, as our current message is relatively small. The problems I see us encountering are:1) negatively impacting our current FHA Loan by purchasing a second. 2) down payment of 20%. We currently have ~$9K saved, but at the purchase budget of $150-$200K we are looking at, I don't know how long it would take to square away the requisite $30-$40K for a 20% down-payment. Eventually we would like to rent the condo, or sell it when the market becomes a bit more seller orientated, but that would be down the road. Even with the addition of another $150K Mortgage, both notes combined would be about the same as the rent we used to pay. How should we proceed? Are there any options for situations like ours? What are some of the problems that I am not even thinking of? Any advice or feedback would be appreciated.Thanks,-BJanuary 25 2010 - Las Vegas00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.