Financing in 97030>Question Details

Jeff, Home Buyer in Fairview, OR

Owe 165K on my home with no equity. Want to get a 2nd home, combined inc. of 80K with 700 cr. How difficult would it be to get a 2nd 100K loan?

Asked by Jeff, Fairview, OR Mon Apr 25, 2011

Getting married this year and would like to see my options in expanding. What do I need to qualify for a 100-130K Loan? My fiance is not on my current mortgage.

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Ignore what the agent says about not letting anyone run your credit, the only possible way to properly qualify you and determine your debt ratio is to run your credit and see what debts appear. Guessing or estimating does not work as what appears on he report are the liabilities that will be calculated.

Your biggest issue is your current property with no equity. If you want to purchase another home in your name you will have to qualify for both principal, interest, tax and insurance (PITI) payments for both properties. If your fiancé has income and an acceptable credit score then she can be on the new mortgage as well to help with the debt ratio. Unless you have 25% or 30% equity in your current property (depending on loan program) there is no way around having to qualify for both mortgages and a loan officer will have to pull your credit to determine that.
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1 vote Thank Flag Link Tue Apr 26, 2011
Hey Jeff,

It would depend on your debt to income ratio. The fact that your fiancee is not on your current mortgage makes no difference because as soon as you tie the knot, you will be considered one and the same.

Chris is right. You should talk to a mortgage broker to see what your options are. Don't let them run your credit now unless you are ready to transact now, as that could hurt your credit score a bit. Talk to your fiancee, talk to your lender, and develop a game plan to get you on the ground and running.

Good luck with buying a new home and your marriage!

It's more than real estate. It's RAYL-Estate!

Brian Rayl, REALTOR®, e-PRO, SFR
Keller Williams Elite Dallas Park Cities
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1 vote Thank Flag Link Mon Apr 25, 2011
Denny is 100% correct. Unless you want to put down 20%-30% ( or 10% down for FNMA Homepath REOs) for going non-owner, the best option would be have your fiance finance the other purchase in her name therefore requiring a minimum down payment versus a large down payment. Plus I always counsel with my borrowers to always try buy independently of one another if possible for several oblivious reasons but it just a good idea to insulate you from issues that could arise due to a future financial hardships or unfortunately a divorce.

Best of Luck!
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0 votes Thank Flag Link Sat Oct 8, 2011
Your debt to income ratio, combined with your credit score is the formula most Mortgage Brokers use to approve a loan. If you would like the names and numbers of a couple of good lenders let me know.
0 votes Thank Flag Link Fri Oct 7, 2011
As long as your income supports both mortgage payments and your ratios are in line, we do not review your equity position in your current home.

John Remboldt
HomeStreet Bank
(503) 317-8886
0 votes Thank Flag Link Sun May 22, 2011
Hi Jeff,

If you need a referral to a couple of good mortgage lenders/brokers, let me know and will give you contact information.
0 votes Thank Flag Link Tue Apr 26, 2011
You need to check with a lender. If you have a bank you have worked with for a number of years - they are more likely to help you out then going to another mortgage broker. I think you will need to look at the total amount of income to debt ratio before you get into a 2nd home. The lender will also want to know about how much rent you will get off the property to see if they will be able to recover the debt should you be unable to make the payments. I hope that helps!
0 votes Thank Flag Link Tue Apr 26, 2011
Hi Jeff,

According to the credit bureaus the time frame for mortgage inquiries to count as one pull is within 30 days of each other however my concern would be your ratios. $80k combined is tight in order to support one home but two? Your wording has thrown me off a bit but are you inquiring about a 2nd home as in upgrading to a larger one you will most likely have to sell the one you are in before purchasing a new home. In order to keep your current home as rental there are requirements where equity and reserves are concerned depending on the program you qualify for. With no equity you have your work cut out for you and some planning to do. I would recommend sitting down with a mortgage professional as well and put a plan into action.
0 votes Thank Flag Link Tue Apr 26, 2011
Hi, I would speak directly to a reputable mortgage lender. Once concern may be what your debt-to-income-ratios will be. This can make or break your ability to get a second loan.

0 votes Thank Flag Link Tue Apr 26, 2011
Hi, Jeff. Ist off, when it comes to mortgages, you can have a number of inquiries (credit pulls) within a 45 day span and it will only count as 1 inquiry. The credit burearu realize that consumers will shop different lenders and not penalize you for it. 2nd: Unless OR is like AZ where the spouses debt is always included, if your fiancee is not going to be on the mortgage, her debts will not be counted against you. 3rd: Any lender you speak to will need to pull your credit in order to properly and competently assist you. But again, a large number of mortgage inquiries within a 45 day period will not affect your score.
0 votes Thank Flag Link Tue Apr 26, 2011
Tyrone, I suggest that you contact some mortgage brokers and see what they say. You may not necessarily want them to run your credit now, just explain you situation and see what programs they might have available for you.
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0 votes Thank Flag Link Mon Apr 25, 2011
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