Profile picture for tlattray

Can I still get a loan for a second house in Maryland?

I am divorced and my Ex-Husband and I still own a rental property in Florida. THis house has been rented for over 4 years. WE have a property manager who manages the property and my EX handles any aditional expenses that my come up. I currently live in Maryland and would like to buy a house for my primary resident. I make $55,000.00 per year; I have a credit score of about 600, I have one credit card with a balance of $5000, and I have student loans that will not go into repayment status until November 2012, and I am prior Military. Can I still be qualified for a home loan?
  • November 29 2011 - Laurel
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Answers (3)

Best Answer

Based on the information provided you may qualify.  VA typically requires at east a 620 credit score.  There are possibly some things you can do to improve your score if it is currently lower than the minimum.

It will be important to have a qualified loan officer review your tax returns, lease and divorce decree in addition to your credit, income and assets.

If you purchased the rental property with your VA eligibility then you may not have any eligibility left to purchase a new home, which means you may be able to use the VA loan but may need a down payment.  You also may use an FHA loan (min 3.5% down) or if the property is eligible, a USDA loan (no money down) might be an option.

I hope this helps.  Without more information it's difficult to determine if you can qualify.

Warm Regards,
Maryland Mortgage Mama



  • November 29 2011
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Yes, you may qualify to purchase a home with a VA loan.  The student loans would need to be included in your debt.  Do you claim a portion of the property's income/loss on your tax returns?  VA does allow for higher ratios, but most would need a full application, credit, 2010/2009 tax returns, and your divorce decree to give an accurate answer.

Couple things...There are lenders that will go down to 600 credit scores.  And, they will use your tax returns, not 75% of the gross rents.  Lastly, you can use your COE more than  once.
  • November 29 2011
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Profile picture for B Mike West
I would consult a local loan consultant.  You may qualify for a VA loan if you have not already used you entitlement.  If you are on title and/or on the loan for your home in Florida, the payments for that home will be included in your financial calculations and you will probably get a credit for 75% of the rent you collect (both split with your Ex.) and the student loans are going to be included.

You may have to work on that credit for a year or so.

Good luck
  • November 29 2011
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