MORTGAGE ADVICE NEEDED ASAP

[Anonymous]

I cannot correct you... This is why I am here asking for assitance, I'm in hopes someone with tricky mortgage education will come along and enlighten me!! 

Thank you for bringing up good points though!

[NC_Mtg_Loaner]

In theory this looks good.....but I'd be concerned about when you plan to build and occupy along with your intent for the current home....

Without seeing your paperwork--i.e. evidence of income from tax returns, proof of child support receipts & continuance, proof of rental receipts and agreements--verifying your qualifying income isn't too difficult but I recommend getting the refinance of the current primary residence done now so that you can state this property is a primary residence while it still is.   (*Did you say when you wanted to build and close on a new primary residnce and I missed it?  That can be a factor in your current primary residential refinance....)   You certainly have the 20% equity needed to avoid PMI which is a plus.

Your future expected income in June 2018 can't be used as qualifying income until it's received so if you plan to build and close in the second half of the year, you ought to be ok in utilizing that income. 

USDA loan wouldn't be a financing option for you since you already own a house.   

FHA would be feasible and you can keep that as your backup loan program for the new construction build if you don't have at least 5 % down for a conventional purchase loan in the event your DTI is >45% and the AUS doesn't approve your new loan for conventioanl.  

[JVille]

Just a concern to note: use of your child support as income has rules. Have you received this income for 12 months? Is it verifiable and actually paid. And will it continue for at least 3 yrs after closing the loan. The answer must be yes to all these questions.
Second possible issue is using Roommate income, it’s often NOT allowable. In fact in my world it’s never usable.
I think the absolute first thing you need to do is get your “personal” home refinanced and not wait until April.

[iced]

You're wanting to really overextend your finances with this. Running a few numbers here:

- Income is 30,000 until you start renting out the old home. I'm ignoring the 7,000 for child support because that's not your money to buy a house with; that's money to support a child with. I'm ignoring the 6,000 in rent because that's being replaced by a (maybe) 1,650 rental for that house. I'm also ignoring it because I doubt you're going to want to take on a roommate in the new home for the next 30 years so it makes little sense to budget a 30 year purchase based on it. Lastly, I'm ignoring the 1,650 for now because that's an estimated rental price - until you have at tenant sign a contract, you have no idea what you'll actually get just yet (and again, not going to make a 30 year decision based on a guess). 

- Debt you want to take on is 400,000 (250 for new house + 170 for old home - 15k in cash). Best-case scenario, that's $1700 a month in mortgages before any taxes/insurance, at least $2000 after. Even if you pay no income taxes, you're left with around $500/month for literally everything else (utilities, car, food, health care, clothing, ...). With your 15% DTI sans mortgage, that $500 is already spoken for. This can be alleviated by the additional rental income, but you're in a very precarious scenario for years, if not decades.

Can you pull this off? Yes, but the stars and moon need to align for you and stay aligned. You must rent out the old home and hope repairs are minimal. Any type of major repair like a roof replacement is going to derail you. You're also going to be cash-strapped if you ever need to make a large purchase such as a car. If your tenant moves out and you can't find a replacement immediately, you're derailed. Even one month of no rental income will derail you. Calling this high risk is probably an understatement. Also, where's the money for savings/retirement? 

If you do this, you will be the textbook definition of house rich/cash poor.

[Shooting-For-800]

I dont want to hurt your feelings but I don't think there is any way in the world you can finance a new construction home and finance your current home at anything close to a reasonable rate.

You need $3,000 per month just to pay the two mortgages and taxes and insurance.

In order to qualify for $3,000 per month at a decent loan rate your pre-tax income needs to be at least $100k per year.

That is $100k with no debt and no PMI.

BTW, construction loans have higher rates and rental properties are harder to qualify for.

I would recommend you talk with a few banks and credit unions before you involve too much time in this plan.

[trusty]

I would recommend going over your options with a reputable mortgage broker. But before you do that, check out this home affordability calculator: https://www.realtor.com/mortgage/tools/affordability-calculator