Profile picture for user655990

Is this even possible.

I am beating my brains out trying to figure out how to resolve my housing situation: I am overseas currently and am required to move back to the headquarters in Washington DC next summer. I would strongly prefer to buy a second home in the area. We already own a condo in Miami - and yes, we are upside down. We owe $160,000 on the property which is currently valued at $90,000 (ouch). We have good - not great credit - 710 average of all 3 credit reporting agencies. My wife and I gross around $190,000/yr. We have zero credit card debt, own our cars outright, and generally are in excellent financial shape - except we have only about 15,000 in cash in savings. Question. What is I the likelihood that I can find a lender to loan me $560,000 - take $160k to payoff the Miami condo outright, and then have $400k to purchase a home in Wash DC? The monthly mortgage payments for the $560k loan would be the same ( or less) than what I would be paying for the current loan in Miami + what I would be paying for rent in Wash DC. Then I would own the Miami condo outright and also be paying for my own mortgage for the second home. Has anyone heard of a bank being wiling to do this? Thanks in advance for the advice and ideas.
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November 04 2012 - US
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Replies (3)

Profile picture for wetdawgs
If you could find a time machine to go back to 2003 or 2005, you could probably achieve your goal.   However, now in 2012 or 2013, it isn't going to happen.

The purchase loan is secured by the value of the property, so can't be higher than the appraisal of the property (minus required down payment).  You will have to deal with both properties individually.

Some options:   are you currently renting the Florida property so you have a history of rental income on your taxes?  

With a property under water and without a history of rental income, you'll need to plan on a down payment of approx 20% or demonstration that you have reserves in saving to cover both mortgages for at least six months.

The worst case - sell the Florida property, take a few years to recover from the impact on your credit scores etc while renting, then purchase again.    With your current incomes, your savings account is awfully lean.  You do have a lot of opportunity to make choices about saving to realize your dreams.





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November 04 2012
A lender was telling me about a program where you can do a short sale if you've never been late on the mortgage, and close the same way (ie keep paying) and then you can rebuy again without penalty through the FHA program.

I would seek out a reputable lender in your area that finances in both DC and Miami to get more information...as the lender I spoke to deals strictly in California so he couldn't help you at all.

Best wishes from So-Cal and good luck
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November 04 2012
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Thanks - very heppful. I'll give that a try!
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November 04 2012
 
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