topic Re: Mortgage Questions in Mortgage Loans

Mortgage Questions

junior88 — Mon, 27 May 2013 13:46:16 GMT

So I am looking into possibly buying a bank owned townhouse. I would buy it as an investment and rent it out. I have some questions since I have never taken out a mortgage ever.

1 - I do have some credit card debt, can that be wrapped into the loan somehow since I will be buying it well below list price? Would I have to take out a HELOC or how would that work?

2 - Since this will be an investment property, would that disqualify me from getting first time home buyer credits?

My credit is good except for the credit card debt. We are talking maybe $12000. I did a chapter 7 about 7.5 years ago. No negatives on my report. Just the usage is bringing my score down.

Any feedback is greatly appreciated.

Thanks!

Re: Mortgage Questions

webhopper — Mon, 27 May 2013 14:52:19 GMT

@junior88 wrote:
So I am looking into possibly buying a bank owned townhouse. I would buy it as an investment and rent it out. I have some questions since I have never taken out a mortgage ever.

1 - I do have some credit card debt, can that be wrapped into the loan somehow since I will be buying it well below list price? Would I have to take out a HELOC or how would that work?

2 - Since this will be an investment property, would that disqualify me from getting first time home buyer credits?

My credit is good except for the credit card debt. We are talking maybe $12000. I did a chapter 7 about 7.5 years ago. No negatives on my report. Just the usage is bringing my score down.

Any feedback is greatly appreciated.

Thanks!

If you buy the home as an owner occupied home, and then move in, then you will be doing fine with getting first time homebuyer loan.

Lenders no longer allow you to roll debt into the mortgage.

Are you talking about buying the home with cash? Do you have a large down payment?

Without a significant amount of equity in the home, you won't be able to take out a HELOC...

The requirements are must stricter now as far as maintaining equity in the home.

Re: Mortgage Questions

junior88 — Mon, 27 May 2013 16:46:08 GMT

The property is worth about $130,000. I can get it for around $90,000 is what I have been told. Its in great condition and ready to move in. So no repairs will need to be done. So with those numbers, I would think I could get a HELOC for the credit card debt or am I wrong?

Re: Mortgage Questions

webhopper — Mon, 27 May 2013 23:21:29 GMT

HELOC will not be allowed unless you have greater than 80% equity... You might have to close on the house and get it re-appraised if opening a HELOC.

Its going to be tricky getting the house to appraise over the purchase price during the sale, but you can certainly try.