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Answers (10)
- Frank Shaw, "Under640FicoScoreLns"
- Contributions:79
Oh yeah, I forgot to add that you can always get added to the deed after he purchased on his own if that is what you wanted to achieve ultimately...
- Frank Shaw, "Under640FicoScoreLns"
- Contributions:79
Yes, you will need to qualify with both mortgage payment if you qualify jointly. Will renting it out cover the mortgage payment and HOA's? Did you have a large down invested in the purchase to look like you are more likely ot hold onto the condo? He may be able to qualify on his own with CHF Access half percent down payment program depending on his debt to income ratio and the home or condo/twnhm prices in the cities your considering. Do you have funds to invest toward the down payment and closing costs or are you trying to purchase with the minimal down like the CHF Access half percent down program? I would look into him qualifying by himself first and if his debt to income ratio doesn't work and then look into how your condo ownership is going to affect the purchase with both incomes and both mortgage payments included in the debt to income ratio as well as reserves and vacancy factor and rental income. Underwriters scrutinize these types of ownerships closely as it is to easy for you to walk away from your condo ownership after the new purchase but I have done many so it can be done...
- Deborah Garvin, "loanmonarch"
- Contributions:438
Just closed a loan in much the same situation. Correct answers that it is unlikely that you will be able to receive credit for any rental income so you and your finace would have to qualify for both mortgage payments and HOA and escrows. Most lenders will also require six months reserves on the rental unit (retirement funds are generally allowable). A lender is going to look very closely at your motivations to ensure you are not going to default on your existing condo (I understand you want to keep it...and, in your area I would encourage you to do so; however, many people are buying new with the intention to dump the underwater property so lenders are skittish to say the least).
Deborah Garvin
Deborah Garvin
- Rohit Mohan, "MortgageGeek"
- Contributions:100
Yes you can buy a new home. You will have to qualify for the new home with the entire current payment on the condo as a debt not counting the future rental income. The combined income has to support all the debts, the 2 mortgages (future and current) and the debt to income ratios have to be inline to get an automated approval. Of course it all has to make sense.
Best is to get a preapproval done from a broker.
Good Luck!
Best is to get a preapproval done from a broker.
Good Luck!
- Michael Abram, "Michael Abram"
- Contributions:17
Hello,
Since there isn't at least 30% equity in the condo, you wouldn't be able to qualify using rental income from that condo on a conventional loan. With that said, you would have to calculate the current payments on that existing condo and factor in the loss when calculating your debt ratios.
It is absolutely possible to qualify for a new mortgage even if the property is showing a loss, but there are a lot of factors that would go into determining this, such as your credit scores, credit debt and analysis of income.
Since there isn't at least 30% equity in the condo, you wouldn't be able to qualify using rental income from that condo on a conventional loan. With that said, you would have to calculate the current payments on that existing condo and factor in the loss when calculating your debt ratios.
It is absolutely possible to qualify for a new mortgage even if the property is showing a loss, but there are a lot of factors that would go into determining this, such as your credit scores, credit debt and analysis of income.
- T.C. Whiting, "TC_at_PNC_Bank"
- Contributions:332
The answer is you ABSOLUTELY MIGHT qualify. (Get it, absolutely might?). We need more info. Best bet is to go for a pre-approval. It's free and won't take 20 minutes.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3427
With your condo upside down, you won't be able to use any project rent income to qualify, this is result of the "buy and bail" restrictions.
If he cannot qualify on his own and you apply jointly, your combined income will be calculated against the projected purchase house payment, the full monthly expense on the condo, and any other monthly expenses on your credit reports that will remain after closing.
So, if you have a lot of income, it might be enough to allow a higher qualifying price combined. You should apply jointly so an analysis can be made, and if your condo "drags down" the file, then you can be removed and maximum amount for your fiancee can be determined on his own.
If a "drag down" is determined, it might also turn out that you will want to stay unmarried until after he purchases in his name, because if you were to marry then your spousal debts would count against him when applying solely in California. (this would be true only for FHA loan)
If he cannot qualify on his own and you apply jointly, your combined income will be calculated against the projected purchase house payment, the full monthly expense on the condo, and any other monthly expenses on your credit reports that will remain after closing.
So, if you have a lot of income, it might be enough to allow a higher qualifying price combined. You should apply jointly so an analysis can be made, and if your condo "drags down" the file, then you can be removed and maximum amount for your fiancee can be determined on his own.
If a "drag down" is determined, it might also turn out that you will want to stay unmarried until after he purchases in his name, because if you were to marry then your spousal debts would count against him when applying solely in California. (this would be true only for FHA loan)
- Gregory Laywell, "GregoryLaywell"
- Contributions:3
Given that you have a person(s) to lease the property, you may be able to use a % of the monthly income to offset the current payment (depending on the lender, other conditions may apply). If he qualifies on his own, that may be your best choice since it would avoid the issue altogether. Also, a large down payment may not be necessary; of course, the bigger the better. There are a lot of "moving parts" and I suggest that you schedule a lengthy meeting with a licensed mortgage professional in your area. Check out www.nmlsconsumeraccess.org
to verify licensure.
to verify licensure.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Talk to a mortgage broker and find out if you qualify, we can take guesses here but we don't know your credit score, income etc....
good luck to you.
good luck to you.
- wetdawgs
- Contributions:26833
If you have >20% down payment for the house, income to support both mortgages and six months reserves to cover both mortgages, you may qualify. As you don't have a history of rental income, it is likely that you won't be able to count rental income.
If I currently own a condo, is there any way I would qualify to buy a home with my finace?
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