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Can I buy a house if I already own one?

I bought a townhouse last July, 7/2010.  My payments are $700 month.  We can rent it for $1,000 month.  We would like to take advantage of the low home prices and interest rates and purchase a house.  We would rent out our townhouse, place 20% down on another house.  My FICO is 790 and my wifes is 800.  Can I qualify if I already have a mortgage?  Would I pay a higher iterest rate?
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October 23 2011 - Fairview
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Answers (5)

Currently owning a home doesn't disqualify you from purchasing another home!  You will however need to qualify with both payments & won't be able to use the potential rent from your townhouse unless you have a history of owning rental properties.  The way the underwriter will want us to prove this will be by a Schedule E of your federal tax return.  Also you won't be penalized by a higher interest rate for owning another property.

Hope this helps!

Justin Livingston
Mortgage Loan Originator
NMLS #270091
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October 24 2011
If you can qualify with both payments then buying another home should be feasible.  If you have 30 % equity in TH then 75% of the rent could be counted with conditions.  In either case there would be 6 months of reserve payments required on TH and possibly 3 months additional on new purchase.
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October 24 2011
I have many clients who own more than one home.  Generally the downpayment is higher on the 2nd home as well as the rate.  Check with your local lender for best deals.
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October 23 2011
It depends on your income. If you qualify to carry both loans, then, yes, you can purchase a second home. You may need to put more than 20% down but do check with your lender. Many people own more than one home successfully!
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October 23 2011
Sounds like a good possibility for you. I have known individuals who have purchased a home and own like a condo. I would suggest talking with a lender who services your region. They are the specialist there and know what it takes to get you into another home. Since you purchased not too long ago, try talking with the lender who assisted in getting the funds for that loan. They will be glad to assist you. If you don't have a contact, try talking with your bank. Most banks have mortgage divisions that can be helpful to you. Thank you for your question.
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October 23 2011
 
Related Questions
Can I buy a house if I already own one?
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Latest answer by Justin Livingston
October 24 2011 | 5 answers
  • Asked by Timmy97060
  • In Mortgage
  • October 23 2011
Mortgage Rates
 
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