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How does it work buying a new home?

Hello,

I want to buy a new house for $150,000. My current home was purchased for $81,500 with a FHA loan. Currently, I owe $76,000. My sister will be paying the mortgage on my current home with and additional $200 per month in my pocket. My credit score is 745. My income is $82,000  per year. Will it be difficult to buy a new home?

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January 08 2012 - Northeast
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Answers (6)

Best Answer
I dont think it will be hard to get another loan as long as you can put a good amount down Typically 10%- 20% of purchase price.  My husband makes the same and we were able to buy two more homes in Mississippi.  Talk with some lenders to find out your debt ratio.. they will tell you your best options. They are there to help.
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January 09 2012
You need to look at your present loan and ask the question - is there something in this loan that says I have to be an owner occupant?  With some loans, if you move out of the home - especially if it isn't for one of their approved reasons, they can call the loan due immediately.  Talk to a lender about what you need to do to qualify, and talk to your present lender about whether you can keep the loan if you are not living in it...  We've seen some lenders requiring a written rental agreement for a home before they give you teh loan for the second.  I saw at least one deal fall through because they were trying to rent to a family member and it wasn't arms length.  Each lender has their own guidelines, so check with them.
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March 05 2012
Congratulations !!! I like it when people want to move it forward. First, I would sit with a Loan Officer to find out your buying power. Second, It would be great to put your sister under contract/lease and make sure that your mortgage will be covered by your sister and if you are making a positive cash flow ($200) that will be in your favor. Third, find a great realtor in your part of town and find a great deal. Keep Us Posted. Best of Luck to You !!!
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January 08 2012
Are you offering your sister a lease with option to buy?  Or is she purchasing the property downright? Or is she leasing the property and you are using her lease to pay your mortgage?.  Trust me when I tell you that in order to give you the right answer to your situation, it will be best for you and your sister to sit down with a lender who can pull your credits and make recommendations. There are too many questions that need to be answered, and the best place to do it is within the privacy of a lender's office.  Best of luck!
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January 08 2012
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That would depends on her credit. What's a good credit score she would need to get a FHA loan?
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January 08 2012
As long as the current home (and current mortgage) remains in your name, you will have to qualify for the new home as if you still own the old home.  Even though your sister is paying you, you still have a debt to the current mortgage.  Can you sell the home to your sister?  That would be the way to go.
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January 08 2012
 
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