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Answers (4)
- schmidtfam
- Contributions:4
UPDATE-We have found a couple that wants to try to buy our house but they have not applied for a loan yet. If they can get approved then we don't have to worry with the refinance or being able to lease it (or owner occupancy) and can move forward to buy another home. Can anyone suggest a good mortgage broker, possibly for both loans?
- schmidtfam
- Contributions:4
Thank you both for the responses. Annette, we are not sure of the exact value of the home but from a recent CMA done by a realtor it should be at $150k, so not where we need to be for equity. A rental agreement before closing would be no problem, there is a list of people wanting to do a lease to purchase on the home (if we can lower the rent even by $200/mo).
Chris, we have not had any difficulty getting approved a purchase loan or refinance, even with the bankruptcy. Our biggest problem has been the mortgage on our current property, because the payments are so high we can't qualify using both payments & we don't have cash reserves at this time to cover the payments. We currently have it listed for $144,500, we can go lower but we will not be able to pay any of the buyer's closing costs or to pay a buyer's agent. We have talked with several lenders and each one has different guidelines and overlays. They all seem to say what they think we want to hear but once I probe deeper we find a snag, I have to ask the same question many times & many different ways to get an answer. Some same no lease without 6 (or 12) months reserves, some say no problem we just need a signed 12 month lease before closing. Some say our credit scores need to be over 680 (or 700) in order to lease. Some say we need to have 25% equity (or 30%) in our current home. We can't refi VA because we want to purchase VA. We can't refi FHA because it has to be owner-occupied. We can't refi conventional because our credit score needs to be at least 700 to get even a decent rate. We've even been told by 1 lender that we can't lease out our home unless we are moving for a job. We have no idea who is right. It would be great if we could sell it, then the problem would be solved. Thank you again, it is nice to get a different take on the issue.
Chris, we have not had any difficulty getting approved a purchase loan or refinance, even with the bankruptcy. Our biggest problem has been the mortgage on our current property, because the payments are so high we can't qualify using both payments & we don't have cash reserves at this time to cover the payments. We currently have it listed for $144,500, we can go lower but we will not be able to pay any of the buyer's closing costs or to pay a buyer's agent. We have talked with several lenders and each one has different guidelines and overlays. They all seem to say what they think we want to hear but once I probe deeper we find a snag, I have to ask the same question many times & many different ways to get an answer. Some same no lease without 6 (or 12) months reserves, some say no problem we just need a signed 12 month lease before closing. Some say our credit scores need to be over 680 (or 700) in order to lease. Some say we need to have 25% equity (or 30%) in our current home. We can't refi VA because we want to purchase VA. We can't refi FHA because it has to be owner-occupied. We can't refi conventional because our credit score needs to be at least 700 to get even a decent rate. We've even been told by 1 lender that we can't lease out our home unless we are moving for a job. We have no idea who is right. It would be great if we could sell it, then the problem would be solved. Thank you again, it is nice to get a different take on the issue.
- Chris Moore, "TheVAloanguy"
- Contributions:21
It will be very difficult to refinance the current home with the bankruptcy 3 years ago, regardless of the value of the home. Agency guidelines (fanny/Freddie) require the bankruptcy to be 7 years old. FHA might be an option if you intended to maintain it as your primary residence, but that is not the case. Your best option would be to lease the present home, but get qualified for a. VA loan on the home you wish to buy first. You will need to have a minimum of 3 months payments in the bank for the home you own now to be able to use rental income to offset the payment. If you are unable to rent the home for enough to cover the payments, you may want to drop the price on it to see if you can attract a real buyer. Your first step should be to contact a lender and make sure you can qualify for a VA loan based upon selling or renting your present home.
- Annette Levinson, "Annette Levinson"
- Contributions:200
How much is your home worth now since it would have to be an investment property for the closings to take place at the same time. You need to have at least 70%LTV no higher for a cash out refi. You also need to have a rental agreement before you close on the new home.
Refinance and purchase, can it be done?
Dilemma: We have 5 kids (adopting 2 of them) and would like a larger home with space outdoors for the kids to play. It is not feasible to further remodel our home as I don't believe we would be able to get back what we put into it. We listed it for sale in September, we receive a ton of calls from people wanting to do a lease to purchase. We have found a bank owned property listed at $100,900, previously appraised for $217k. Is it possible 1)to refinance our current home at a lower rate (not VA) and 2) do a lease to purchase agreement for a 1-2 year term and 3) buy another home with a VA home loan? Maybe do an ARM for the refi since we do not plan on keeping the home? We don't want to make an offer on a home & then have issues arise. Not exactly sure but our credit scores range 650-680. The refi would allow us to charge a reasonable monthly rent & still be able to offset the current mortgage. If it is possible, can the purchase & refi be done simultaneously or which should be done first?
We are hoping for advice or suggestions. We recently discovered one of the little girls we are adopting has a kidney failing, we don't want this to drag out too long. I apologize for the lengthy question & appreciate you taking the time to read it.
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