Have an attorney review your mortgage agreement. If this condo was purchased as your principal residence I would make sure that you are within your rights to use it as an income property. The lender can call the note and that could force you into a different situation. Please take the time to verify and act on responsibly or the consequence may be alarming.
Because the property is currently underwater, you would have to qualify with both mortgages, full PITI on both properties. And, if the rental income does not show up on your taxes, you cannot count any of that income.
Cobalt Financial Corporation
Generally you would have to show you can pay for both mortgages. I cant say for sure though.
I can give you a couple of recommendations on who to speak with to get prequalified.
You will not be able to count 75% of your rental income in your debt-to-income ratio for qualifying, because you do not have 30% equity. You will need to qualify for both loans with just your household income. In addition to your down payment and closing costs, you will be required to have 6-months PITI & HOA Dues on your condo plus 2-months PITI reserves and HOA, if applicable, on your purchase.
Happy funding, Rudi
You may be able to purchase another home. It all depends on your income, credit and down payment. I would suggest checking with one or more of the lenders that you will find at this site : http://www.yoursdps.info/3/W0000019741/P0000367194.htm . I have worked with these lenders and they have a variety of programs and one of them may work for you.
Jerry Heard - Broker
CA DRE # 00648687
I believe that you need to show one year's worth of rental income, but check with your lender to be sure; I can provide you with a few if you need them. Without rental income, you would need to prove that you can afford to carry both mortgages. This is done so that you don't buy another home, then walk away from the property that's under water, like so many homeowners have understandably done in the past.
Good luck to you!
The very best thing is to talk to a lender given you will need a loan to purchase a new property. We would recommend that you talk to the person below:
Sr. Home Loan Consultant
613 W. Valley Parkway #230
Escondido, CA 92025
Office: (760) 270-9280)
Mobile: (619) 889-9024)
Fax: (866) 596-6195)
Best of luck to you,
Mark & Kari Shea
Shea Real Estate
Serving Greater San Diego
although what most of these agent's responses are true, there are ways around it. You only have to qualify for both mortgages if it is your departing residence. I have a way that you can purchase another property even with your current property upside down without having to qualify for both.
Give me a call. I'd like to share this with you and show you how we've already helped a few in your same situation.
Daniel Di Matteo
Century 21 Award
Best of Luck!
This is a perfect "buy and bail" type scenerio as lenders see it.
Safe Harbor Money Management
CA DRE License #01863531
Let me know if I can help you in any way!
Joan Wilson (Realtor, SRES, Ecobroker, Certified REO and Short Sale/HAFA Specialist)
California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
License # 01341483
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