Any guidance would be appreciated!
I've been in my current home just shy of 20 years. It was a great move when I was in my 20's and my mortgage payment was $235! I pretty immediately began refinacing though and jacked up the loan amount. I've been paying on the (refinanced at ridiculously high interest) current mortgage for about 15 years. I only owe $31,000 but at this point, even if the house would appraise that high, I couldn't sell it anyway other than "as is". (Trust me. I purchased originally without inspections.) Lots of empty houses and "as is" go for half what I owe. Not a booming real estate neighborhood. I've been waffling for the past few years trying to convince myself I'm OK here. I'm not. I hate this house and want to move. My specific question goes to financing FHA on a new home without selling this one. Obviously, I'm concerned that LTV on the current house is at or close to 100%.
I casually glance through listings but have not contacted any agents or financial institutions. I casually glanced at the perfect house this morning. I may not be able to do anything with this one but houses seem to stay on the market for a while around here. So maybe?
Current mortgage balance: $31,000, monthly payment: $458 (includes taxes and insurace)
Minimum payments on everything reported to credit: $959
Gross monthly income: $6250
Employment: FT, 8 years current job, 15 years industry
List price of new home: $105,000 (also target price range if this isn't the one)
Monthly taxes and insurance on new home: $200
Money available for down payment: 3.5% (If I'm going to do anything quickly, deal will have to include seller-paid costs so I guess that's another specific question)
Savings: nothing really to speak of
Credit score: 710(sources are Experian's consumer site, Walmart, and Discover)
Credit summary: (Began rebuilding in 2010)
- Total trade lines reporting is 17 with my current mortgage being the only one older than 2010 so average age is lowish at 2 - 3 years
- I have 6 lines reporting for a solid 2 years which include my mortgage and 5 credit cards
- Only 3 of the 17 are reporting less than a year with the two newest at 6 months
- Mix of trade lines includes mortgage, major credit cards, retail cards, unsecured loan, auto loan. The 2 aged less than a year are both credit cards
- Utilization is at or under 20%
- Baddies: current mortgage reporting shows five 30-day lates and one 60-day late in 2008. Perfect payment history since then on the mortgage and all other accounts show perfect payment history. No collections, no judgments reporting.
I think I'm inside the maximum DTI requirements for FHA if I include both mortgages. I may be wrong and I also understand that my situation may create more lender discretion there. I realize the lack of savings and current limit to 3.5% of down payment money are issues also.
Is there a way to approach a new home purchase in this scenario? I don't really even want to get into conversations about renters - that may come down the line but I think my initial plan would be to put a friend or family member here and not even count on rent income. They'd just be sort of an "insurance policy" so that the current house isn't abandoned. I wouldn't abandon it, by the way. It's been tough getting my credit situation back together and I'm not going through that again. Oh, I'm single, no dependents and would purchase and occupay alone.
Thank you for any feedback!
