Question Details

Out and About, Home Seller in New Jersey

getting a mortgage for a second home

Asked by Out and About, New Jersey Fri May 1, 2009

We are looking to buy a second home in NYC. We are very qualified in that we have a lot of equity in our current home, various assets, and are very high income earners. However my husband has a credit score just under 700 (high 600). Can we get a mortgage higher than $417,000? we will put 25% down. what kind of rates? As usually it seems to me the people who make the rules don't know what they are talking about. if you want to stimulate the economy and get the nyc re mkt going shouldn't they ok people like us who want to buy have good income potential steady employment? the gov't is helping people who have no money to pay their mortgage, but not lending to people who can afford the mortgage because of a not so low credit score? how are the banks going to pay for all these foreclosures if they can't lend to qualified buyers?

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Answers

6
No, not a problem at all. As a retail LO for Bank of America, I can originate loans in all 50 states. All of the information I gave you was run through our pricing engine specific to that area so there should not be any surprises.

Yes, Countrywide is now officially Bank of America Home Loans. As much as I would welcome the opportunity to originate your loan, I would be lying to you if I said you couldn't just walk into your local Home Loan Center and receive exactly what I just quoted you.

However, why would you want to do that, right? :-)

I hope to hear from you. Have a great weekend!
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
0 votes Thank Flag Link Fri May 1, 2009
i'm not sure if it is a national score or local (NYC) score but a required score in current markets is above 700. We were actually surprised that my husbands credit was lower than that because we had no problems in recent years get LOC and other financing with no problem at all. we have always been a good risk and more than qualified borrower. we are looking into other brokers since it is always a good idea to compare rates and programs. Thanks Luke for letting me know there is hope :), and i will keep your contact info handy especiall since we are already have several personal accounts with BoA. I see that you are in NC is that a problem since we are looking to purchase in NYC? also is countrywide now BoA?
0 votes Thank Flag Link Fri May 1, 2009
NYC-

I can't see why you were not qualified since the jumbo fannie porgram usually just wants a 660 minimum score. Like I quoted you before, that was an actual rate quote from my system and I am told if there are any issues with the price based on the criteria.

However, as you can see, I have 75% loan-to-value, second home and a loan within conforming limits.

I don't see how you won't qualify. It is very possible that I have more lenient guidelines being a retail bank and not a broker.

I'd be glad to qualify your loan if you need assistance - no strings attached.

Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
0 votes Thank Flag Link Fri May 1, 2009
just realized this was posted in all areas, it should have been posted in NYC. I did specify minimum 25% down. I just read a thread here where fannie and freddie were allowing $729,000 mortgages increased from $417,000. our problem is not that we are not qualified, we are more than qualified, (obviously i am working w/a mortgage broker) but after she told me that because of a late car pymt 5 years ago (that has been resolved) that my husband's credit is at 680. Doesn't seem right since we have a very valueable property that we owe less than half on, and little debt as well as very high incomes. In looking at this credit report and all of our other criteria, you would kind of figure that there was some misunderstanding with the car payment that was late 5 years ago and has been resolved. wouldn't you?
0 votes Thank Flag Link Fri May 1, 2009
Hi NYC Bound-

No need to worry. Yes, you can absolutely qualify for the scenario that you just put forward. I am not exactly sure of the exact loan amount you need or in what city you are buying but here is a general rate quote:

Assume 680 credit score
$800,000 Purchase Price
$600,000 Loan Amount
property is in a High Balance Conforming Area so that the loan qualifies
Second Home
30-year fixed rate 6.375%
No points

Please feel free to call me if you have any questions
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
lukeallisonloans@gmail.com
0 votes Thank Flag Link Fri May 1, 2009
Hello, I work in a 2nd home market, though not in New York,I can tell you it is all going to depend upon your Credit scores, Debt To income Ratio and the amount of down payment,
I am afraid the investors and lenders who gave loans to "undocumented"( buyers who didnt have to prov there income or jobs) to buyers who really couldnt afford them, are now making all buyers today pay for that!
In order to answer your questions about rates and payments etc, I highly recommend you get pre approved BEFORE you go looking at homes. It is not the same for all buyers, so dont assume what your neighbor or friend is told to be the same for yourselfs
Good Luck!
0 votes Thank Flag Link Fri May 1, 2009
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