topic Re: Can I buy a home ...AGAIN? in Mortgage Loans

Can I buy a home ...AGAIN?

cabronsaim — Fri, 27 Apr 2012 20:03:09 GMT

Back in '09 with help ($$) of my mother I bought a lot with 2 homes, the reason behind the buy was merely business, so we went with a conventional loan. the Down was 120k and the loan was for 269k. At that time we tought financing would never ever get any lower and bought points. I ended up with a 5.375% interest rate and a $2124 monthly payment that includes the tax assesor's fees and the insurance.

My current job pays me $45,000/yr and the 2 homes above are rented out for $1595 and $1785 respectively, my family is out of the country and I live by myself so I opted to rent a room in a roomate scenario, which is working fine because my rent s only $445. I dont think I can beat that.

Anyways, my family is coming to the States soon and Im thinking I want to get another house for me and my family to live in. I can probably do about 50k down on an FHA loan.

ANyone thinks this is possible with my current situation?

My Fico scores are in my sig.

Thanks in advance

Re: Can I buy a home ...AGAIN?

seemund — Fri, 27 Apr 2012 21:57:13 GMT

I believe you can, but your 2 current loans will be included in your DTI.

Do you have proof of rental incomes? (taxes, check receipts, etc?) If yes, then I believe you can count that as income, for qualification purposes....

Re: Can I buy a home ...AGAIN?

cabronsaim — Fri, 27 Apr 2012 22:02:28 GMT

@seemund wrote:
I believe you can, but your 2 current loans will be included in your DTI.

Do you have proof of rental incomes? (taxes, check receipts, etc?) If yes, then I believe you can count that as income, for qualification purposes....

There is only one loan. May I ask what DTI stands for?

I do include the rental income on my taxes, however the last couple of years I did a great deal of improvements, resulting in less profits from such.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 00:56:52 GMT

Yes you can do it but be prepared for a crazy underwriting scenario. I own two homes (a duplex) and recently bought a 3rd. Underwriting was a nightmare. I'm not sure you will qualify for FHA because of the other two houses, but you might be able to you would have to check with the LO. Your scores need to be above 680 mid score to qualify for conventional. Let me find my thread about my UW process.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 01:04:07 GMT

http://ficoforums.myfico.com/t5/Mortgage-Loans/OMG-I-get-a-closing-date-today/m-p/1166083

Hope this helps a little

Re: Can I buy a home ...AGAIN?

aussiesareforever — Sat, 28 Apr 2012 01:58:41 GMT

Where did you get your scores in your signature. Are they truly FICO scores?

Re: Can I buy a home ...AGAIN?

cabronsaim — Sat, 28 Apr 2012 02:23:01 GMT

@aussiesareforever wrote:
Where did you get your scores in your signature. Are they truly FICO scores?

EQ and TU are Fico's from MyFICO, EX is Fako from experian.com

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 02:37:33 GMT

Have you looked into a Usda loan? You meet the lower income requirement. You may be eligible for that program. Your scores need to be higher for conventional financing. Have you considered kicking one of the tenants out?

Re: Can I buy a home ...AGAIN?

cabronsaim — Sat, 28 Apr 2012 02:37:59 GMT

@webhopper wrote:
http://ficoforums.myfico.com/t5/Mortgage-Loans/OMG-I-get-a-closing-date-today/m-p/1166083

Hope this helps a little

Re: Can I buy a home ...AGAIN?

cabronsaim — Sat, 28 Apr 2012 02:43:26 GMT

I am not intetested in kicking the tenants out, their rents are a nice income to have. If I cant buy now I will wait untill september, I have 2 derogs, one that may fell off by then. I could also look into sending a GW letter for the other derog I have.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 02:49:42 GMT

Ya I know what you mean. I wouldn't kick mine out either. I'm better off financially with them living there and building my equity for me. I would talk to a loan specialist and ask about Usda eligibility and Fha eligibility and that's where I would start first if I were in your shoes. I couldn't get Fha on my new house because my duplex is currently in an Fha mortgage and you aren't allowed to have two... darnit!

Re: Can I buy a home ...AGAIN?

cabronsaim — Sat, 28 Apr 2012 02:54:52 GMT

Yup, thats exactly why I didnt go FHA the 1st time, I knew It was not a good idea to move in then and I didnt want to waste it.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 03:56:22 GMT

To prevent circumvention of the restrictions on FHA-insured mortgages to

investors, FHA

generally will not insure more than one principal residence

mortgage for any borrower. FHA will

not insure a mortgage if it is

determined that the transaction was designed to use FHA mortgage insurance

as a vehicle for obtaining investment properties, even if the property to be

insured will be the

only one owned using FHA mortgage insurance

Any person individually or jointly owning a home covered by an FHAinsured

mortgage in which ownership is maintained may

not purchase another

principal residence with FHA insurance,

except in certain situations as

described in

HUD 4155.1 4.B.2.d.

Exception

: Properties previously acquired as investment properties are not

subject to these restrictions.

Continued on next page

So this is the reason why I went conventional on my new house... I used the FHA mortgage to buy a multi family property which was owner occupied for 4 yrs. I then turned it into an investment property.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 04:07:48 GMT

Also:

Rents, Royalties, Partnerships

(from Schedule E)

Any income received from rental properties or royalties

may be used as income, after adding back any depreciation

shown on Schedule E.

And:

In order to calculate the rental income

•

reduce the gross rental amount by 25 percent (or the percentage developed

by the jurisdictional HOC) for vacancies and maintenance

•

subtract PITI and any homeowners’ association dues, and

•

apply the resulting amount to

−

income, if positive, or

−

recurring debts, if negative.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 04:50:13 GMT

And here is the Link to the FHA Handbook I was just looking at... don't worry, I had my own reasons for looking this up... I found what I needed in this handbook... I wanted to see about Streamlined Refinance on my current FHA loan that is being used an investment property

http://portal.hud.gov/FHA-Handbooks/collections/current/print/4155-1_4.pdf

Re: Can I buy a home ...AGAIN?

cabronsaim — Sat, 28 Apr 2012 04:34:38 GMT

Wow. Im overwhelmed lol

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 04:51:47 GMT

I went through this for 4 months... During that time I read the underwriting manuals for 3 different Mortgage Insurers, as well as the Fannie Mae and Freddie Mac Guide for lenders to sell their in house mortgages to fannie and freddie.

Its all very fascinating how slow the cogs of bureaucracy actually work now that everyone is so scared of writing a bad mortgage.

Re: Can I buy a home ...AGAIN?

webhopper — Sat, 28 Apr 2012 05:01:05 GMT

@cabronsaim wrote:
Wow. Im overwhelmed lol

Dont feel overwhelmed... the bottom line is that you need to find a loan officer that is very very good to deal with your mortgage.... since it will be more complicated than most files that cross their desks. I would interview them before you even apply.. Ask them how many second home, investment property, FHA loans while owner also owned investment property, etc type loans that they have closed. You need someone who knows what they are doing.

When stupid people get ahold of your file, you'll get dinged for inquiries and you won't get a mortgage from them. (I went through 5 of these)

It was hard keeping my scores up due to all of the people who pulled my credit report who didn't know what they were doing.