Answers (6)
- Adam R. Cohn, "palmbeachmortgage"
- Contributions:169
As long as you can qualify with both homes with your current income you will be fine, you will have to write a motivation letter on why your buying the home.
Thanks
Adam
Thanks
Adam
- brech10
- Contributions:8
Thanks Everybody.
I did speak with an agent about a short sale and I decided not to move forward because:
a) It seemed that I would get denied.
b) I wasn't really comfertable with the credit hit.
It sounds to me...and please comment if you feel differently (or agree), that the best move may be to move up into a rental house for a few years, rent out the townhouse as much as possible, and build up a nice big cash reserve. My thought is that I would have a lot more options when I've made another 10-15K in equity in the townhouse and closer to $100K cash reserves to bring to the bank.
I did speak with an agent about a short sale and I decided not to move forward because:
a) It seemed that I would get denied.
b) I wasn't really comfertable with the credit hit.
It sounds to me...and please comment if you feel differently (or agree), that the best move may be to move up into a rental house for a few years, rent out the townhouse as much as possible, and build up a nice big cash reserve. My thought is that I would have a lot more options when I've made another 10-15K in equity in the townhouse and closer to $100K cash reserves to bring to the bank.
- Jason Anger, "FHA JAY"
- Contributions:57
If you short sale your townhouse you will NOT be able to get a new loan on a new home for a "minimum" of 2 years (unless you have a huge down payment -40% or more down; and go with a private loan). If you are WAY upside down on your townhouse and do not have good reserves (money in tha bank) the underwriter may label this a "BUY AND BAIL" and deny your new loan EVEN if you can afford both payments debt ratio wise. This is a common situation you are in. Hopefully you are or will be working with a "smooth operator" as far as mortgage guy/girl because a bad loan officer could waste a bunch of your time and money telling you you can do something when in fact....you can't.
- Al Norman, "PRMI Branch Manager"
- Contributions:58
I agree with the advice both of the gentlemen above have given you. You also may want to look at short-selling your home if your request for short selling the home can get approved(many times they will deny a reason just listed as "move up buyer" which based on what you included would be the primary motivation). I would suggest investigating the option of short selling and if that does not work after you have spoken with your lender then consider qualifying with both payments(your new home payment as well as your current home). I also am very familiar with the area as I used to own property in Tuscawilla Country Club and they have taken a bit of beating as far as values are concerned. I hope this helps.
- Brian Goetz, "bri_gets"
- Contributions:451
Because you are upside down on your townhome, you would need to qualify for both the current mortgage payment and the new loan. They will look at the total monthly cost of the townhome (loan payment, property taxes, insurance, and HOA fees) An underwriter will not allow you to use the rent you collect on your townhome as income to help you qualify.
With a low down payment, you may consider using an FHA loan to purchase your next home. That is unless you currently have an FHA loan on your townhome.FHA only requires a down payment of 3.5%.
I would suggest you contact a local lender and get pre-qualified before you start looking at properties. Most lenders have plenty of free time nowadays and would love to speak with you now in order to secure future business.
With a low down payment, you may consider using an FHA loan to purchase your next home. That is unless you currently have an FHA loan on your townhome.FHA only requires a down payment of 3.5%.
I would suggest you contact a local lender and get pre-qualified before you start looking at properties. Most lenders have plenty of free time nowadays and would love to speak with you now in order to secure future business.
- michael seligman, "mjseligman"
- Contributions:214
If the debt ratio works carrying both properties, you can buy (assuming credit, reserves and everything else falls in line). You could rent for a while and save as well until you get the opportunity you are looking for .... either way.
Looking for my mortgage options...
-Looking to make a move end of 2011.
-Gross household income is $115K
-No Credit Card debt
-$415/mo (total) car loans
-$245/mo student loans
-$15K cash in-hand
Should I rent a larger place for a while and save?
Would I qualify to purchase one of the many short-sales, foreclosures and rent out my townhouse?
Thanks!
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