Question Details

Jfaucheu, Home Seller in New Orleans, LA

Refinance my current house before or after purchasing 2nd home.

Asked by Jfaucheu, New Orleans, LA Wed May 16, 2012

I currently own a condo by myself in Louisiana and am about to purchase a house with my fiance in Florida for our 1st house together. I will be starting school out there, so we will only be on 1 income for about 4 years. My question relates to my condo. Right now my interest rate on my FHA loan is 5.875, so I definitely need to refinance if I am going to rent. I decided to rent because right now I don't think I could sell my condo for what I owe on it, especially after taxes and real estate commission. So right now I think renting would be best. But anyways...Would it be best to refinance before purchasing the house in Florida or wait until after we purchase the house. We both have excellent credit, so I don't want to hurt that at all. I can't seem to find an answer anywhere online that I can find to help me understand the best options for this situation. Any advice?

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I just found a site that tells you if you can qualify for a mortgage after a short sale or foreclosure. Try http
0 votes Thank Flag Link Sun Aug 11, 2013
collections & open judgments must show on your liabilities. Please provide an LOX for all Derogatory credit this LOX should show that the circumstances were temporary in nature, beyond the applicant’s control and resolved to the best of their ability

5) VOR‘s are required for all USDA loans. USDA has been consistently requesting this information in the past 30 days. For files above 640, a VOR will suffice. For files under 640, we will require 12 months cancelled checks. If a VOR is not available due to the borrower living with family, an LOX will be needed
Web Reference:
0 votes Thank Flag Link Thu Apr 11, 2013
The owner occupancy clause in the new mortgage will define what is meant by owner occupancy. Briefly, it says you must live in the property for at least 12 months after the closing date. If you know that you are going to move before then, do not tell the loan officer you are going to be an owner occupant.

Before anyone busts me, no, I have never heard of anyone having a loan called due because they moved prior to a year. But since mortgage fraud is the government’s hot topic today, you do not want to be a test case. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Fri May 18, 2012
My view is:

1. Re-fi your current residence now, if you can. This will improve your financial profile for the new place.

2. Your Florida purchase my be considered a second home, due the distance from the first.

The answers you are getting are not in harmony. Nonetheless, the answers raise questions and possibilities for you to investigate and upon which you can capitalize. A knowledgeable loan broker will help you sort all this out. Be sure to ask all the questions so nothing is overlooked.
0 votes Thank Flag Link Fri May 18, 2012
Gregorio Denny is really good - you might want to contact him and review your situation.
0 votes Thank Flag Link Fri May 18, 2012
Your condo will have to be refinanced as an investment property either way. I would suggest that you close on the new property first to make sure you actually need to refinance as investment, then do a FHA streamline refi on the condo after closing. Contrary to what others may believe, you can do a FHA streamline on an investment property.
Web Reference: http://HarpSupport.Com
0 votes Thank Flag Link Thu May 17, 2012
I am currently under contract on a house in Florida and hoping to close by the end of June.
0 votes Thank Flag Link Thu May 17, 2012
You should double-check with a local mortgage loan officer for advice.

The answer depends on how soon you'd like to buy the house. If it's within 2-4 months, I would recommend not doing the refi, since it would be tough to close on two loans at the same time. If you're looking out over 18 months, then you can refi your condo, get some rent that covers your monthly payment. After a year, the bank would consider the rental income as part of your new loan process.
Web Reference:
0 votes Thank Flag Link Thu May 17, 2012
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