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I am interested in relocating. My current home is worth around $195k....but could probably sell for $185k in the curent market. We owe just under $100k. We refinanced in December 2010 and our current payment is $499/month, 30year fixed. I was hoping to rent my current home and purchase the new home for around $220k. We both have reasonably good credit, scores around 750 and combined income of $70k.
Total debt (aside from home) is around $11,000. Two car payments totaling $656 a month as well.
Curious about your initial thoughts -- if you think it might even be possible for us to purchase with 0 down, and if so, what loans might be out there to consider. Thanks!

  • January 05 2012 - White House
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Answers (3)

$0 down?   Only if you are eligible for a VA loan.
  • January 05 2012
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A better option would be to sell the current house and put down at least 20% on new purchase. It is unlikely that you would qualify for current and new house payment so renting current house is not a viable option. Owning a rental property and living in another area is not an ideal scenario anyway, and first month tenant misses a rent payment would likely put your cash flow in a bind.
  • January 05 2012
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You might be eligible for a HUD owned home for $100 down if your relocation is far enough that it's not reasonable to commute from current residence.

However, you must DTI with both properties included which you should if what you stated was correct.  Keep in mind that all lenders might employ different overlays to meet the Investor guidelines but it's worth contacting someone perhaps.

The conversion of your current primary residence to a rental property will not allow you to include any rental income as income eligible to pay back a mortgage until you have 2 yrs hx of being a landlord.
  • January 05 2012
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