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Claudia, Home Owner in Murrieta, CA

I have a home that I can refi under the Harp program I'm thinking of refi'ing the house renting it out and buying new. what are the?

Asked by Claudia, Murrieta, CA Thu Mar 15, 2012

guidelines ? What are the banks looking at when you want to purchase a second home...how long do we have to wait to buy a home? do we need to get a renter in the house first?

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First, get the refi done and drop your rate and payment while you can; as long as it makes sense and doesn't cost too much.
0 votes Thank Flag Link Wed Apr 4, 2012
This can be done pretty easy but it's a little tricky so make sure you work with an experienced Loan Officer to guide you through land mines, pitfalls and traps. It'll make all the difference in the world.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Fri Mar 16, 2012
Claudia:

Refinancing under the HARP program is an amazing opportunity. It is offered to any borrower who has remained current on a mortgage that was recoreded prior to May 31, 2009.
In addition to owner occupied homes, this program is available to any finance property currently owned by Fannie Mae or Freddie Mac.
That being said, there have been no stipulations that state you may not rent out the home and move onward to another property.
That being said, because your home will not meet the 30% equity requirement, the new lender will not take into consideration any proposed rents to your home. At this time, underwriting guidelines do not allow rents to be considered if their is less than 30% equity in the home or 70% LTV.
Keeping this in mind there are lenders who, without proof that you have been a recent landlord, will not count that rent against your debt ratio, either.
Bottom line: in order to obtain new financing, you will have to qualify for both payments.
But first!! Get your HARP loan financing now!! :)
0 votes Thank Flag Link Fri Mar 16, 2012
Hi there,
I have recently helped a client who had a modification and purchased a second home with an FHA loan a year later.

When you show a hardship in order to get a modification (Refi) , this will count against you when qualifying for your next home.Also , It is very important to abide within the terms of any federally backed loan programs to avoid serious and potential legal issues.

Rental income isn't usually counted unless shown on your tax returns, however , if you're next home is larger , closer to work , etc..you are allowed to use FHA to purchase a second home.

Your best bet is to talk to the lender who accomplished this ..

Please email me at : theJORYgroup@gmail.com or call 951.742.3751 and I'll pass along that info...


Thank you,

Jory Blake
0 votes Thank Flag Link Fri Mar 16, 2012
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