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Can we get a loan for a new house with the current house under water

We are located in Northern VA and our current house (condo) is under water:
loan amount $278,000; estimated value: $215,000
My husband is the only one on this loan. We are trying to take out a loan for a new house we plan to buy (loan amount $508,000, with a 20% downpayment for house price $635,000) under both of our names. We have excellent credit scores (both over 780) and the debt/income ratio is good. We have already found a tenant for the current house- we will shortly have a lease agreement signed and checks in hand. Can we at all get the second loan? Thanks in advance for your input and advice. 
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December 20 2012 - Reston
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It doesn't matter if your condo is under water unless you sell it as a short sale. If you have enough income, you can get a loan. Plus your rental income will be counted as an additional income.
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January 07 2013
If your front and back end dti is 55% including the existing home payment we have great ( very competive rates and fees) portfolio loans to talk about. Or if we can use the new rent if needed then you would have a higher likelyhood of being approved. Please reach out to me.
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December 20 2012
As the other two loan officers mentioned when you say "our debt/income ratio is good"

Are you factoring in the rent that you expect to receive when you say this? If yes that is a problem as you will not get credit for your rent.

Can you qualify for the new purchase on just your income?

If yes you can explore that route, but from the way your write your question this seems unlikely.

In a related matter, check to see if your underwater condo is harp eligible. Perhaps if you can refi that condo and bring the payment down enough it will help you qualify for the new loan.
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December 20 2012
I would not go as far as making it sound like there is a snowballs chance in hell of being approved.  You just need to be prepared to qualify with both mortgages and not be able to use the rent you expect to receive.  That along with some reserves (401k funds count) and you should be good to go.
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December 20 2012
Without two years of previous rental history on your taxes or appreciable equity on your condo (20% or more), it may be a bit of a problem to get qualified for the new home. You mention a good debt to income ratio...does it include the payment for the Condo?
Lenders are a afraid of the "buy and bail" scenario. If your DTI is still good counting both house payments, and you have an excellent letter of explanation regarding your new home purchase, this transaction is not DOA, but will be a tough loan.
Best wishes, Jim
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December 20 2012
 
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