Financing in 95828>Question Details

Marene, Home Buyer in 95828

I plan to retire in 2 years, but I want to buy a home in a different state than I currently live and work in I can commute and telecommute. I have

Asked by Marene, 95828 Sun Jul 25, 2010

to prepare a letter to the underwriters conveying my situation. Help please?

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Marene: Your lender who is doing you loan should have the correct answers for you. But I do like the explanation below about having your employer assist by writing a letter explaining that you can commute with no ill effects on your job or income.
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Mon Jul 26, 2010
Hi Marlene:

what is the question, are you short or foreclosing on your current home.

Are you buying in a new State and are asking what the lender will say once you made an offer?

Its simple if it is the latter:

1.) What are you doing with your property for the next 2 years, and how are you qualifying for it.

By rule of thumb its deemed a rental, 2 yrs out, transfer, tele-commute sounds promising but
UW wants to know how will you pay and will it be a rental and do you have the means.

Also if you are at the limit of your debt to equity ration, for your lender it maybe too risky.

Best Regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Mon Jul 26, 2010
Just to clarify the second home advice. That only works if Marene current owns a home.

Barbara
0 votes Thank Flag Link Mon Jul 26, 2010
Go with the second home all day long. You will get the same interest rates as the primary residence just have to put more money down. The catch is that you do not rent the house out and that you live in the house for less than half the year. Since Sacramento is more than 75 miles from the Bay Area you should be alright geographically. Take advantage of this situation and get in the house with the lower interest rates and lower home prices, if it costs a little more with the down payment that is just an extra cost of getting it done now, but you should not need to buy using "investment property" as an option.
Enjoy your pending retirement.

Matt Puzz
Loan Originator
Citizen's Choice Mortgage
602-410-9333
0 votes Thank Flag Link Mon Jul 26, 2010
HI Marene,

You have some good advice, below. Did you ask your loan originator for help with this letter? They will know what the underwriter is looking for. If you already own a home, you can also look into buying this as a second home, however you will have to put down at least 10%. Your interest rate should remain the same.

Good luck & happy retirement,
Ros

Roswell Moore, CMPS
CERTIFIED MORTGAGE PLANNER
NMLS ID 263779
DIRECT 480 422 5095
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Mon Jul 26, 2010
You always have the option to buy a home in a different location and call it second home. The specifics must make sense and you cannot show rental income, but I see no reason that this should be problematic.
Web Reference: http://www.bankerdoug.com
0 votes Thank Flag Link Mon Jul 26, 2010
Your personal lender is the best person to answer this question as they have all the facts related to your financial situation and what your specific lender may require. I tmight qualify as a second home, or it might require you to identify it as an investment property at this time....your lender would know.

Good luck to you!
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Sun Jul 25, 2010
Hi Marene -

I have a client in a similiar situation as you. He rents and works in the Bay Area, wants to buy a home now in Sacramento and plans to retire within 6 months. All of the lenders I have spoken to will not consider his purchase to be "owner-occupied" because of the distance. This means FHA financing is not an option. If he chooses to go conventional it will be as an "investor" which requires 25% down and several months reverves. Another financing option available now while he is still employed is to purchase a HomePath home. Investors are only required to put 10% and there is no mortgage insurance.

Are you already in contract and now going through the underwriting process with your lender?

Barbara
0 votes Thank Flag Link Sun Jul 25, 2010
Hi Marene. I think you have to do just that. Write a letter thoroughly describing that you are able to still commute and telecommute to your job from your new home. It would help if you could get a letter from your employer detailing that you have the possibility to telecommute. But I would just write a letter, approximately one page, detailing why it will be possible for you to have this new home as your primary residence and still be able to work at your existing job.
Web Reference: http://www.lisajonsson.com
0 votes Thank Flag Link Sun Jul 25, 2010
Hello Marene. Are you already in contract for the purchase of the new out-of-state home? Is the purpose of the letter to explain that the property will ultimately owner occupied? Can you clarify what your situation is. What is the underwriter asking of you? Sorry, I am not sure how I can best help as I don't feel I have enough details.
0 votes Thank Flag Link Sun Jul 25, 2010
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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