Home Buying in Dayton>Question Details

Jstewart0131, Home Owner in Dayton, OH

Building second home while trying to sell first

Asked by Jstewart0131, Dayton, OH Fri Jan 24, 2014

I currently own a very nice historical home in the Wright Dunbar Village neighborhood that we have previously needed to sell prior to being able to obtain a mortgage for a new home. The current home is a 3 bed 1.5 bath 2200sq ft fully renovated home. I recently received a substantial increase of income, which according to home affordability calculators, will allow me to hold two mortgages while I trying to sell our current home.

My primary question is how long of a period will I need to be able to show the increase in my income for mortgage lenders to use my new salary in determining eligibility for the second mortgage?

Secondarily, we are now equally interested in outright selling and rent/lease to own. For a lease to own option, what is considered acceptable as far as writing into the agreement that the leasing party be responsible for maintenance items? We feel this would give the leasing party more of a stake in taking care of the home and minimize our risk.

Help the community by answering this question:


You have a lot of options , which is good. You need to discuss your financial options with a lender that specializes in new construction. There are loan products that will combine a present mortgage with the new one for building the new home. That way you do not have to move twice. Then you sell the previous home afterwards.

All lending terns are not standard, so that is why you need to discuss eligibility with a loan professional.

That is where you need to start.
0 votes Thank Flag Link Sat Jan 25, 2014
Hi Jsteward, those are good questions, to answer your first question, when you get an increase you should not have to wait any time frame to get a loan based on your new income. Once you show the lender your increase in income they should be able to qualify you based on your current income. Of course that all depends on each lender guidlines. I can put you in touch with a lender that I have a relationship with if you like.
For your second question, in my past personal and business experience in doing lease purchases is; to get a large down payment. It's a catch 22 with this topic because most people that do lease purchases most of the time don't have large amount of money to put down. People will take care of the home base on what you put in the contract as their responibility when they have a big stake to loose. So the larger the down payment the most likley they will take care of the home and actualy will buy the house and the end of the term. Dont let anyone give any excuse on how they can get you the money later or will pay half the down payment. Don't let anyone move in without getting the full large down payment. Been there, done that and every time I thought the people would come through, they never did.
I would love to work with you, call me any time, I am a full time Realtor.
0 votes Thank Flag Link Sat Jan 25, 2014
You need to sit down and talk with a Realtor®. The answers will lead to more questions and this may be a 30 minute conversation.
Feel free to give me a call if you would like and if you need a Realtor® in the Dayton area I know a few.
0 votes Thank Flag Link Sat Jan 25, 2014
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