Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for livethegoodlife

Is there a way to be approved for another primary residence if current home is underwater?

We are currently 100k underwater but need a larger home as we are expanding as a family and my husband now works from home. What do we need to do in order to get approved for another loan for another home?
  • October 28 2012 - Lake Mary
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (7)

Best Answer

Profile picture for wetdawgs
No, you aren't stuck in the house for the duration of the loan but the choices may involve some discomfort.  There are many ways people are getting out of the situation:

Selling and covering the $$ difference then renting for a few years to rebuild a down payment before buying again.

Strategic default, then renting for several years  to be eligible for a loan.  (Talk with an attorney before getting involved in something like this).

Renting now and renting out your current home so that you have a tax record of rent for a couple of years to count on your income.

It is not easy, and many are in your shoes.
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for livethegoodlife
@steadystate---FYI, no crap that this was a result of our doing. I'm simply here seeking advice on a real estate forum that offers advice to those in similar situations. And why the heck are you bringing the Constitution into something like this?? Yikes! Moving on...to those that were kind enough to offer your professional advice for homeowners in our situation, I appreciate it. @wetdawgs and @workabee--Thank you! Any other (professional) advice is always welcome... @Linda, that could be a possibly as my husband has offices all over the country...
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

ouch...$100K!

Are you or your husband perhaps required to relocate 50 miles away from  Lake Mary
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for SteadyState
Pardon me for calling a spade a spade - but this was the result of your doing. Owning a bigger home is not a guaranteed right in the constitution.
The options are not pleasant - take a loss or remain in the home.

 If the opposite had happened - you made a windfall would you have given a part of the windfall back to the tax payers? I suspect not so one should not wish for help when bets do not go our way. (Yes - it was a bet as it always is, when making an investment)
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for livethegoodlife
Thank you for your responses.

So basically, we are stuck in this house for the duration of the loan....?  If we want to purchase a 300k home, we need to have at least 60k cash and show that we can cover both loans, correct?

How else are people getting out from these situations?  It seems as if many people are in similar situations.

We don't have a hardship---we just don't want to be here forever.  It wasn't really the plan....

Thank you!
  • October 29 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
Plan on at least a 20% down payment, or perhaps 30%.  
Plan on showing you have the income to carry both mortgages at the same time (not including rent).

If you can't do the above, the sell and bring the $100k to closing so you can move on and immediately buy a new home.      If someone suggests a short sale, be aware that one must qualify for a short sale by demonstrating a hardship.   Choosing to expand one's family is not considered a hardship by lenders.

  • October 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for workabee
It'll probably take 25% down on the second and you'll have to qualify to carry both payments together. Too much buy and bail so the lenders are covering their bizness upfront.
  • October 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.