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2nd home

New Member

2nd home

I need some advice-
My husband and I want to build a 2nd home. We own some land  free and clear and we would be using this home as  a rental property. Our FICO stands at about 678 currently and we refi'd our home to pay off 30,000  of a 36,000 bill in combined cc debt. I have recently changed careers and am a self employed insurance agent, currently being paid by advances until my backend kicks in which won't be for another year and a half. My question is should I take out a 5,000.00 loan to secure the house price for a year that we want to build and gain some valuable upgrades; or should we wait until another year and a half for the BEnd to kick in? Any advice is appreciated-
inslady
Message 1 of 3
2 REPLIES
Established Contributor

Re: 2nd home

What area of the country are you?  If you don't expect further down turn in real estate prices in your area.(i don't think its over yet IMHO)  You could secure the property now and the cost to hold would be the interest paid.  This is a big purchase that effects your  income taxes also. There could be some big benefits in moving ahead now.
9/18/08 TU=707 EQ=706 EX=702
Message 2 of 3
New Member

Re: 2nd home

Thanks,
I live in the mid-west and the property is on the east coast-I already own the property, it's paid for and we have been paying taxes on it quarterly so we want to build next year. The problem is do I need to secure the cost of the house package with upgrades now with the $5,000 loan increasing our debt load to 11,000 -or coax the fico up and wait for my backend finances to kick in?
inslady
Message 3 of 3