Financing in West Palm Beach>Question Details

Hicksox, Home Buyer in

How much does owning a condo impact my chances of buying another house?

Asked by Hicksox, Wed Mar 14, 2012

I have a score of 640, no credit card debt and a $150k mortgage on a condo I rent out. We want to buy a new house about $400k. Will I have a hard time getting approved?

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Hi Hicksox,
I can recommend 2 excellent contacts to assist you with best answering these questions. They have many programs to tell you about and see if you qualify. Please send me your email or contact information so I can pass on these names and numbers. They have helped many of our clients and are the most honest, successful, and customer service oriented professionals I have worked with.
Kind regards, Diana Nardy or 561-371-3334.
0 votes Thank Flag Link Tue Oct 16, 2012
Thank you all for your responses. We're not looking to buy right now so I have a few months to get my score up a little and my finances in order. I don't want to apply now, but if I reach out to a mortgage broker and have my credit report and financial details, would they be able to give me a good idea if I could get approved or not?
0 votes Thank Flag Link Thu Mar 15, 2012
Great question, but there is a lot more information needed to give an accurate answer to this question though. We have no idea why your score is 640. We have no idea what your income is. We have no idea of any of your other expenses. Your best bet is to contact a knowledgeable & reputable lender to discuss your situation and to issue you a pre-approval

I would be happy to help you with your financing. Our company Residential Finance Corporation is a National Direct Lender with access to some of the industries lowest possible rates and more importantly service second to none. We close loans on average in about 18-20 days start to finish. We underwrite and process your loan in house so you are informed every step along the way.

I look forward to hopefully hearing from you.

Joshua A. Lerette
Senior Loan Officer
Residential Finance Corporation
800.930.7334 Ext. 1108 – Toll Free
813.402.4637 – Direct Line
727.488.7355 – Cell
888.692.5967 – Fax
0 votes Thank Flag Link Thu Mar 15, 2012
It's going to come down to your debt-to-income ratios.
Are you actively working? If so, are you self employed or are you a W-2'd employee?
If you're self employed, have been so for at least two years?...

That's just a start. There are multiple questions to be answered by you before anyone can give you a correct answer. Contact a local lender & ask then your question. They should be able to answer your question in about 10 to 15 minutes.

Good luck,
0 votes Thank Flag Link Thu Mar 15, 2012
Dear Sir,
The best answer I can give you is that you sit down with an experienced Mortgage Broker. I have several trusted associates I can refer you to. Please give me a call and I will be happy to assist.
This is a great time to purchase. If you are planning on using your condo as an investment property and renting it out, you will want to run the computations regarding your income on the investment short and long term. I would suggest you have a sizable downpayment for the new home--at least 20% down. Getting approved and paying the bills need to balance in your lifestyle!
Amy Moody, Realty Associates 561-308-5269
0 votes Thank Flag Link Thu Mar 15, 2012
Alot will depend upon your tax returns (income), debt and how you are paying your current mortgage.
I would need to see your tax returns for the last 2 years, taxes & HOA fees on the new house and your credit report to give you a correct answer.
0 votes Thank Flag Link Thu Mar 15, 2012

If the new house will be an investment property, your 640 score will be problematic. If the new home will be your primary, you will have many more options with that score. Secondly, unless you have a history as a landlord, your rental payment will not be counted as income for two years. Sometimes, it can drop to one year on an exception basis, however, that is unlikely with the 640 score. This means both your old payment on the condo AND the new home payment will be calculated in your debt to income ratio.
This obviously is a higher hurdle than most borrowers anticipate. However, if your income is high enough, it is NOT a deal killer!
I would suggest strongly you contact a good loan officer to analyze your credit and complete application before shopping for the house. The loan officer should be able to suggest ways to improve your scores and your overall application and tell you exactly the amount of home you could qualify for! I had an applicant in October with a 580 score. We worked together since then, and yesterday, her new scores were 647! She got her pre-approval letter about an hour ago. It can work!

Best wishes, and good luck!

Jim, American Bank
703 615 4675
0 votes Thank Flag Link Thu Mar 15, 2012
There is always a significant burden to show that the "income property" one
has gives benefit to your finances! Your Wage Income and "other Incom"
vs.the payment /expense involved in the condo will be closely examined.
Your equity in the current value,amount of positive cash, length of time
in renting , proven " track record " of timely payments are all issues!
With these factors OK The Morgage "program", and the Amount of
Downpayment you are considering will give you a picture of what's
possible. Talk to Mortgage Professionals with programs that have
standards consistent with your credit,debt ,and income profile and
comfortable with other "income property".

0 votes Thank Flag Link Thu Mar 15, 2012
If you have rented that condo out for at least 1 year and can show that on your current tax return then you can use the rental income to help offset the debt. As long as your current income including this rental income can qualify you for the mortgage then you would be in a great position to buy another home. I work with an excellent mortgage broker that could definitely help you with this scenario. I close these on a daily basis nowadays with so many people underwater on their current properties. I know the mortgage consultant that I work with has lenders that can go up to 57% debt to income ratio. I have a great deal of knowledge with mortgages myself and would love to discuss this in more detail with you. I am confident I can help you with the purchase of your new home. Contact me anytime. I am up late and start early.

Jeffrey L. Tricoli, P.A.
Keller Williams Realty
0 votes Thank Flag Link Wed Mar 14, 2012

Your first step should be to speak with a mortgage broker.

Important factors would be your credit score, your ability to pay both mortgages if you should lose the tenant in your condo, and will the new house be your primary residence. How large a downpayment will you be making on your new home?

If I can be of further service, please let me know. You can contact me directly at the numbers below.

Nadine Mauro
Highlight Realty
0 votes Thank Flag Link Wed Mar 14, 2012
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