topic Re: Can I buy a house in a different state before we move? in Mortgage Loans

Can I buy a house in a different state before we move?

Jess21 — Tue, 17 Jun 2014 14:45:57 GMT

We are wanting to move to a different state next year and want to buy our first home but can we do the whole process from here, before we start new jobs?

Re: Can I buy a house in a different state before we move?

ezdriver — Tue, 17 Jun 2014 15:20:53 GMT

You can purchase a residential property in any State at any time. Is there a reason why you think otherwise?

Re: Can I buy a house in a different state before we move?

Jess21 — Tue, 17 Jun 2014 15:44:44 GMT

But wouldnt they question what we want the property for and stuff.

Wewant to buy a house but not where we live currently, we want to buy closer to family in a bigger city. However, we will be getting new jobs there so from what I had heard we will have to wait like 2 more years after we move to be apply to able for a mortgage since we will not have been at our current jobs for 2 years. Does that make sense?

Re: Can I buy a house in a different state before we move?

ShanetheMortgageMan — Tue, 17 Jun 2014 16:30:49 GMT

If you are moving to an area not within commuting distance of your current job, and they will not let you work remotely, then you will need to have employment that would allow you to work in the new area before you can purchase a home as your primary residence there. If you can get an irrevocable employment contract, then there are programs that will allow you to purchase the new home prior to you beginning employment. If they won't provide the employment contract, then most lenders will need you to have received a paystub showing you've been paid for 30 days before you can close, and some lenders will be OK with just 1 paystub showing you've been paid for a shorter period of time. So you won't have to work at your new job for 2 years.

Alternatively, if you won't be moving for awhile then you could purchase the new home now as a 2nd home with a 10% down payment and use your current employment & income to qualify.

Re: Can I buy a house in a different state before we move?

ezdriver — Tue, 17 Jun 2014 17:17:34 GMT

You can buy the home out of your area ... but as an investment property. Based on the scenario that you posted, it is my assumpted that's what was intended. You can't claim it as a primary residence unless you're living in it post closing. Also, it will be your first home so you can't buy it as a 2nd home.

Re: Can I buy a house in a different state before we move?

Gunnar419 — Tue, 17 Jun 2014 17:25:20 GMT

This won't help if you're buying in a hot market or if you must have a house that's in absolutely perfect shape, but I've bought a home in another state using seller financing. It needed just enough work that a bank wasn't likely to finance it, and it was quite a project for me, but was still perfectly livable and the seller financing was easy.

Re: Can I buy a house in a different state before we move?

WhiskersTheCat — Tue, 17 Jun 2014 17:29:57 GMT

ezdriver I am confused; I am in a similar situation as the OP. I was wonderring why do you need a first home to claim a second home? Couldn't your primary home be a rental? I am currently renting and would like a second home to go home (Texas) on the weekends. Couldn't I just put 20% down, conventional, and continue to pay rent where I am currently working? I know I must show that I can afford all payments, but other than that it should be okay? Right? I can live in my rental during the week and my new home on the weekends? Right? Hence, it does not need to be an investment property? I would be living in both at the same time (weekends vs. weekdays).

Re: Can I buy a house in a different state before we move?

StartingOver10 — Tue, 17 Jun 2014 17:35:49 GMT

You are right. Your primary residence can be a rental that you live in full time and you can purchase a 'second home' under second home underwriting criteria.

We do that all the time here (Fl) where we have tourists that buy second homes/vacation type properties and don't own a home where they live full time (typically NY).

The underwriting is a little different and you put down more down payment. That's all.

Re: Can I buy a house in a different state before we move?

ShanetheMortgageMan — Tue, 17 Jun 2014 17:39:00 GMT

@ezdriver wrote:
You can buy the home out of your area ... but as an investment property. Based on the scenario that you posted, it is my assumpted that's what was intended. You can't claim it as a primary residence unless you're living in it post closing. Also, it will be your first home so you can't buy it as a 2nd home.

You can certainly buy a home as a 2nd home even if you don't own a home currently.

It only has to be purchased as an investment property if you intend to rent it out or never occupy it.

The table below provides the requirements for second home properties.

✓ Second Home Requirements

	must be occupied by the borrower for some portion of the year
	is restricted to one-unit dwellings
	must be suitable for year-round occupancy
	the borrower must have exclusive control over the property
	must not be rental property or a timeshare arrangement
	cannot be subject to any agreements that give a management firm control over the occupancy of the property

Re: Can I buy a house in a different state before we move?

ezdriver — Tue, 17 Jun 2014 17:43:24 GMT

@WhiskersTheCat wrote:
ezdriver I am confused; I am in a similar situation as the OP. I was wonderring why do you need a first home to claim a second home? Couldn't your primary home be a rental? I am currently renting and would like a second home to go home (Texas) on the weekends. Couldn't I just put 20% down, conventional, and continue to pay rent where I am currently working? I know I must show that I can afford all payments, but other than that it should be okay? Right? I can live in my rental during the week and my new home on the weekends? Right? Hence, it does not need to be an investment property? I would be living in both at the same time (weekends vs. weekdays).

My bad ... I used the term "investment property" to distinguish the terms, conditions and underwriting criteria that apply to a purchase mortgage on a primary residential property vs a non-primary residential property. Mortgage rates, downpayment requirements and underwriting criteria are all different. I should have explaind that better ... but the OP's question was very generic so I responded generically.

Re: Can I buy a house in a different state before we move?

Jess21 — Tue, 17 Jun 2014 17:54:55 GMT

well we didnt really plan in a 10% down payment, so I guess thats a no go for us. We only have about 5% down and we do want to live in the property full time and maybe for the rest fo our lives, we just dont want to wait another 2 years to be able to qualify for a mortgage

Re: Can I buy a house in a different state before we move?

Jess21 — Tue, 17 Jun 2014 17:56:14 GMT

where we want to move is only 3.5 hrs away couldnt we commute? lol

Re: Can I buy a house in a different state before we move?

ShanetheMortgageMan — Tue, 17 Jun 2014 17:58:39 GMT

@Jess21 wrote:
well we didnt really plan in a 10% down payment, so I guess thats a no go for us. We only have about 5% down and we do want to live in the property full time and maybe for the rest fo our lives, we just dont want to wait another 2 years to be able to qualify for a mortgage

Well after you get your new jobs, then live in temporary housing for a month or so while you are in contract on your new home, and then close at that point. It's not as convenient as purchasing a home before you find a new job, but it's not as annoying as having to wait two years.

Re: Can I buy a house in a different state before we move?

ezdriver — Tue, 17 Jun 2014 19:37:09 GMT

@Jess21 wrote:
where we want to move is only 3.5 hrs away couldnt we commute? lol

Get one of those car/plane things ... and you're good to go.

Re: Can I buy a house in a different state before we move?

StartingLifeOver — Mon, 07 Jul 2014 04:34:11 GMT

I was wondering the same thing as OP. I currently live/work in NC and want to purchase my first home in VA. Can I still use a first time buyer program if the lender considers it a 2nd home? Also, how far is an acceptable commuting distance to a lender? I'm considering an area that is 2.5 hrs away. My plan is to be there on the weekends and continue renting in NC during the week.

Re: Can I buy a house in a different state before we move?

ShanetheMortgageMan — Sat, 12 Jul 2014 21:19:08 GMT

@StartingLifeOver wrote:
I was wondering the same thing as OP. I currently live/work in NC and want to purchase my first home in VA. Can I still use a first time buyer program if the lender considers it a 2nd home? Also, how far is an acceptable commuting distance to a lender? I'm considering an area that is 2.5 hrs away. My plan is to be there on the weekends and continue renting in NC during the week.

Depends on what the first time homebuyer requirements are. Most require you to be a resident of the state and they all require it to be your primary residence. 2.5 hours is usually not an acceptable commuting distance, but it also depends on distance... as sometimes the morning commute in Los Angeles can take a couple hours just go to 60 miles. But if it's 120 miles then that generally won't fly. You'd probably need to purchase this as a 2nd home, with the rent in NC being calculated in what you can qualify for.