unique situation, need two mortgages

[Anonymous]

I apologize if I infered you were being dishonest.  It was more the case of knowing the rules now, going forward without being honest to the brokers would be unethical.  On the boards here we have to make sure people are not discussing ways around legal and ethical credit practices.  There is a strong chance that one broker would find out anyways (particularly if you were looking at FHA or any government loan program) if you did not disclose it.

If you put the numbesr together, what DTI are you looking at for all of your debts (don't count any rental income becuase you have to have a pre-existing lease with cancelled checks (i believe for 12 months) and they would probably want to see that it was claimed as income on last years taxes.  If DTI is very low (say sub 40%) and you are going to have at least 20% equity and currently have 680+ FICO midscore then there is a decent chance this could go through.  I think in any circumstance unless you have prior mortgage history (I don't know if you do) an underwriter on the investment property is going to be concerned about you taking on 2 mortgage at once.  They will want to see reserves that confirm to them that ability to fix any major problems that come up without putting your ability to pay the loan at risk.  But, if the file is strong all the way across the board you have a good chance.

[Anonymous]

mickie, thanks for your advice. I can understand your caution. I really didn't think I was being unethical but now I understand. the loan I requested if a convential for the investment property, I will have 25percent down.

I think my DTI ratio is pretty good. I made 44k last yer and montly debts total 614/month. I have 4 cc but have paid the balances down.

I feel like I have gotten myself in a horrible situation and don't know how to get out. here I find my perfect house didn't think I would get it but I did. at the same time, I need to continue to help my mom. if I can't buy the house for her and I know what she will be able to do. I wish they could all move with me, but my new house wouldn't be big enough.

the only thing I can think of now is just to move forward with my house and hope to negogiate a new deal with the seller of my moms house.

any other thoughts/ideas

[Anonymous]

It will be tought o get approval on 2 mortgages at 44K income with 614 per month in debts already.  Assuming you are looking at maybe 900 payment on the primary and 600 on the investment (those are just a guess as I have no info about taxes and the interst rate for the investment, etc...)

900+

600+

614

2114 monthly debt

3700 gross monthly income

That is 57% DTI which is way too high. 

Do youhave abreakdown on what your monthly debt includes?

Also, it sounds like buying the primary and then worrying about your mom later is the best option.  The market is not going anywhere right now and unless the seller of the 2nd house has other buyers lined up, he will likely be willing to let it hang for another 6 months or so to figuer out what is going on.