My husband and I are interested in renting our current home and purchasing a larger home for our growing family size (three children). Current home is FHA ARM with decent rate. Our ficos are in the 660-670 range due to a fraudulent collection found on my husbands credit (still working on getting this removed). We would have to go conventional on the new home but only wanted to put 5% down, which puts us at a major disadvantage because of our ficos. We would have to qualify for both payments which we could based off our income. Also was looking at the homepath program but I'm not sure if it'll be a good fit because of the fraudulent collection still showing on his credit.
My question is whether or not we should first refi the current home into a conventional so that it would open our options on the new purchase? Or would that only hurt our credit further and delay us being able to move forward with buying a new home?
Also we do not have the option of selling our current home as it is currently underwater due to the housing market.
We have elderly parents we are also planning on taking in with the new home and don't really want to wait too long but still want to make the right choice for the future.
Any suggestions or comments would be appreciated.
My husband and I are in the same situation. We can not sell and want to buy. We are looking at the home path . com to see if that is an otp. I will pay close attention to your outcome. We were told we could not have two FHA loans so we must go conv. loan. Refi is out because we are 20k underwater. What a stressful time. No sure where to start!