Sticky mortgage issue, we need to move, due to job issue. However, I am not sure if we can qualify for FHA
Here is situation. I have a home under my name, and my wife have a house under her name. We wanted to sell home under my name, but then we would be forced to take loss. Fortunately, I have verbal agreement to lease the townhome for $ 1,700. My wife currently rents her property for $1,100 a month. My wife and I have combined income of $100,300, but if we were to count the expected rental income as well, it could be $115,700. We have taken combined heloc of $70,000 from both properties for repairs and upgrades, expecting to sell, but obviously due to currently economy, we have been unable to sell, Under best circumstance, we would wait until 3-4 years, but due to job relocation on part of my wife, we would have to move. We have further debt obligation of $ 300 per month for student loan, and have no other debt obligations.
What are our chances of obtaining FHA loan, to purchase $300,000 townhome, assuming 5% down payment?
if your trying to qualify for an FHA mortgage, the house being rented will need at least 25% equity. If it does not, the rental income cannot be used as income.
You'll need to demonstrate a history as a landlord, which I think you can do based on what you've said so far.
Hi Ed,
Assuming I get a lease on my current home (Which has been paid off) will I be able to credit 75% toward income or full 100% of the amount? I think I have some where that I can only credit 75%
Thanks,
Young
You should be able to qualify assuming that your current home is not financed with an FHA loan. Also, you will need a signed lease and be able to prove receipt of the first month's payment to be able to use the new rental income. You will need a written pre-approval for the purchase so please contact me to go over the details.
Ed Fallon
Experienced Mortgage Professional
Helping homeowners since 1984
DIRECT: 484-841-6072
CELL: 610-308-9001
Office: 610-832-0666
FAX: 484-991-1912
Lincoln Mortgage Company
15 East Ridge Pike, Suite 101
Conshohocken, PA 19428
Talk to Naomi Doriguzzi-Mortgage Consultant with New American Mortgage. Her telephone number is (757) 971-2876. You can also reach her website at http://www.freemortgageconsultationtoday.com. Please tell her that I referred you to her. Good luck to you. Have a great day.
additional info: One of the house is paid off, and I have excellent credit: 770
Income: $115,700
debt: Heloc $70,000 (3.99% interest) Monthly payment of $232.75
Student Loan: $46,000 (2.2% interest) Monthly payment of $ 305.70
No Credit card debt, cars paid off
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