Need help from the experts with my options

[wfreeman3]

I am purchasing a home (new construction) for 153k at the end of June. The initial plan was to sell my manufactured home (no mortgage) for 85k and put down 20%. Due to the housing collapse I don't think I am going to be able to sell my house before closing. My income is $3358 a month. My debts are a car loan $385 a month, and a motorcycle loan $305 a month and thats it. I am also a veteran, so I have that option. I would like to use the fact that I will be able to lease out my current home for $1000 per month as part of my income to make the numbers work. My current scores are TU 689 EX 659 EQ 601. My household income is really twice what I listed due to the fact that my wife makes the same as me but, her credit is worse than mine so I would probably be better not bringing it up. I have about 10k in cash. I have never claimed BK and I have no late pays in 3 years or more.

Thoughts for best option?

[ShanetheMortgageMan]

In order to use the income from your current home you would need to have a fully executed rental contract on it prior to buying the new home.  100% financing is available using your VA eligibility for a VA mortgage, however other than using a VA mortgage to purchase the home you would have to put 3% down in order to buy the new home.  From your credit profile it sounds like you should be fine to qualify for a VA mortgage.  Depending on your wife's credit it might not disqualify her from helping you qualify for the new home - then you might not need a rental contract on your current home in order to qualify for the new purchase.