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second home

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Anonymous
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second home

Greetings!
 
My husband and I owe a townhouse that we are renting out.  We outgrew the townhouse but at the time did not want to purchase a second home so we are renting a larger property.  We now would like to purchase a house but we would like to keep the townhouse as rental property.  Mid Credit scores are 780 (mine) 720 (his).  We do have a high level of debt due to student loans 120,000 (total).  We have several credit cards that we hardly use and a car payment. 
 
We are looking at a house that costs 600,000 and could put down 10% if we had to but of course we would like to avoid that if possible. What is the response do you think we would receive from lenders when we decide to actively pursue this house?  What can we do to improve our chances of qualifying for this house?
 
Thanks for any advice given!
Message 1 of 5
4 REPLIES 4
DallasLoanGuy
Super Contributor

Re: second home

City, County, Zip? <= this matters for loan limits.
 
What is the PITI(principle + interest + taxes + insurance as well as hoa and pmi) on the rental? And how much is the rent agreement? 12 month lease?
 
 
 
 
Retired Lender
Message 2 of 5
Anonymous
Not applicable

Re: second home

2003.00 PITI - Rental payments 2000.00 for over two years we pay 3.00 toward it each month.
 
22191 - jumbo limit is over 700,000.
 
combined income - 160,000
Message 3 of 5
Anonymous
Not applicable

Re: second home

HOA
 
220 quarterly
Message 4 of 5
ShanetheMortgageMan
Super Contributor

Re: second home

Assuming your debt to income ratio qualifies, I'd look into both a conforming jumbo at $480k for the 1st mortgage and also a regular conforming ($417k) loan program - followed by a 2nd mortgage which would go to 90% CLTV.  The $480k amount would be 80% of the purchase price which would save you from having to pay mortgage insurance.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 5 of 5
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