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jennielee15
Let's try this again....
Member since 7/11 2269 total posts
Name:
Jennie
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X-Post (Dream House)
post in finance
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Posted 2/24/12 12:28 PM  |
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Re: X-Post (Dream House)
Have you actually talked to a few mortgage lenders to see if you could qualify (jointly, or just your DH if your credit is an obstacle)? Are you just making assumptions that you can't?
I have had customers get approved to buy a new home and keep their existing home. You say you are "overextended" with the existing house -- do you mean it's hard for you to cover the monthly payments? Because then you said that paying the monthly mortgage isn't a problem, so I wasn't sure.
Credit is only part of the picture. Any lender will also look at your debt-to-income ratio, and that's where owning a home already (or your DH owning it) may make it impossible to get another loan.
One option may be to rent the existing home (if you are open to being a landlord, which obviously has some downsides, including wear and tear on your property). If you can cover your mortgage and expenses on the existing home with rental payments, then you may be able to qualify to buy a new home.
But there's absolutely no way to know that unless you sit down with a mortgage company or a bank and find out. And if one lender says no, try a few others, because while there are certain requirements put in place by FHA or Fannie Mae, lenders then often layer their own criteria on top of that. So what one lender can't do, another lender may be ok with.
Feel free to contact me if you need recommendations for mortgage lenders!
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| Posted 2/24/12 2:14 PM |
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jennielee15
Let's try this again....
Member since 7/11 2269 total posts
Name:
Jennie
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Re: X-Post (Dream House)
Posted by Century 21 Dallow - Christine Braun
Have you actually talked to a few mortgage lenders to see if you could qualify (jointly, or just your DH if your credit is an obstacle)? Are you just making assumptions that you can't?
I have had customers get approved to buy a new home and keep their existing home. You say you are "overextended" with the existing house -- do you mean it's hard for you to cover the monthly payments? Because then you said that paying the monthly mortgage isn't a problem, so I wasn't sure.
Credit is only part of the picture. Any lender will also look at your debt-to-income ratio, and that's where owning a home already (or your DH owning it) may make it impossible to get another loan.
One option may be to rent the existing home (if you are open to being a landlord, which obviously has some downsides, including wear and tear on your property). If you can cover your mortgage and expenses on the existing home with rental payments, then you may be able to qualify to buy a new home.
But there's absolutely no way to know that unless you sit down with a mortgage company or a bank and find out. And if one lender says no, try a few others, because while there are certain requirements put in place by FHA or Fannie Mae, lenders then often layer their own criteria on top of that. So what one lender can't do, another lender may be ok with.
Feel free to contact me if you need recommendations for mortgage lenders!
It;s definitely an assumption but an educated one. DH owns the home but it is worth less than he owes which is why I said he is upside down on it. Renting it is actually what we would like to do since selling it would just add money to our debt. As far as getting a loan for another house in the hopes of renting the house when we move out do lenders look at that?
When I say my credit is bad I mean that is is soooooo bad that I am in a program to fix it as we speak. My wages are currently being garnished due to an unpaid student loan. So yeah, I am not an option!
Thank you for your reply and any further information would be greatly appreciated!
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| Posted 2/24/12 2:41 PM |
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jennielee15
Let's try this again....
Member since 7/11 2269 total posts
Name:
Jennie
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Re: X-Post (Dream House)
Oh and when I said overextended I meant that adding a second mortgage would overextend him not that he is currently considered overextended!
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| Posted 2/24/12 2:44 PM |
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Re: X-Post (Dream House)
So yes, I think renting is going to be your best option, if you want to move. The fact that your dh is upside down on his mortgage will only be a factor if you decide to sell. But if dh is going to continue to own that home, I don't think that will factor in.
If you are going to rent the home dh currently owns and move to a new primary residence, then yes, that rental income will factor into the income that is looked at to qualify you (but my understanding is that you'd have to have proof that it's rented out and you are receiving that income before it's factored in). So it's going to be hard for you to rent it out BEFORE you buy a new house, since it's your current residence).
But a mortgage lender will be able to look at your overall financial picture to tell you what is and what is not possible. It's really hard to generalize and say you need x FICO score to qualify, because it's not just the FICO score but what exactly is on the credit report (there are several factors that go into your FICO score). And it's looking at your credit in conjunction with your income and your existing debt. I don't know all of the ins and outs of it since the mortgage side isn't my field of expertise, but this is my general understanding of how it works.
Even if you and your dh don't qualify now, a good mortgage loan officer can tell you specifically what you need to do in order to qualify in the near future.
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| Posted 2/24/12 4:26 PM |
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jennielee15
Let's try this again....
Member since 7/11 2269 total posts
Name:
Jennie
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Re: X-Post (Dream House)
Posted by Century 21 Dallow - Christine Braun
So yes, I think renting is going to be your best option, if you want to move. The fact that your dh is upside down on his mortgage will only be a factor if you decide to sell. But if dh is going to continue to own that home, I don't think that will factor in.
If you are going to rent the home dh currently owns and move to a new primary residence, then yes, that rental income will factor into the income that is looked at to qualify you (but my understanding is that you'd have to have proof that it's rented out and you are receiving that income before it's factored in). So it's going to be hard for you to rent it out BEFORE you buy a new house, since it's your current residence).
But a mortgage lender will be able to look at your overall financial picture to tell you what is and what is not possible. It's really hard to generalize and say you need x FICO score to qualify, because it's not just the FICO score but what exactly is on the credit report (there are several factors that go into your FICO score). And it's looking at your credit in conjunction with your income and your existing debt. I don't know all of the ins and outs of it since the mortgage side isn't my field of expertise, but this is my general understanding of how it works.
Even if you and your dh don't qualify now, a good mortgage loan officer can tell you specifically what you need to do in order to qualify in the near future.
Can you FM me some possible loan officers to talk to?
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| Posted 2/24/12 4:31 PM |
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Re: X-Post (Dream House)
Posted by jennielee15
Can you FM me some possible loan officers to talk to?
Of course! You have FM.
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| Posted 2/24/12 5:03 PM |
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