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Loan for 2nd house

Just found out our current house is worth less than we thought we are planning on holding on to it for couple years and renting it till better market... We want get approved for new house of 203,000 (1200 new payment) and our current house pyt is 822.00 ($70,000) ... Credit scores of around 680 lil higher and we have debts of $1600 a month ( student loans etc ) we have combined income of $113000 ... Do you think we will have any problems having both mortgages ?? Also any suggestions would be helpful
  • August 17 2013 - Omaha
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Answers (2)

You will want to keep the total of both mortgages (taxes, insurance, and payment) and all the minimum payments that appear on your credit report at around 33% of your gross income.  With compensating factors (down payment, assets, excellent credit) it could go a little higher than this.  One thing that a lot of loan officers will miss because it does not show up on DU's automated approval system is that if you are buying a new house and keeping your old house most lenders want you to have six months of assets in reserve (verified cash after the cash needed to close) for both mortgage payments.  In your case they would want you to have about $12,000 in reserve assuming those payments you listed include taxes and insurance.
  • October 04 2013
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I don't think this will be an issue. Please feel free to contact me through my profile if you would like me to run through the numbers for you
  • August 18 2013
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