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iwantboost, Home Buyer in Indianapolis, IN

Buying a 2nd house, renting out my first house. Need advice!

Asked by iwantboost, Indianapolis, IN Sun Jul 22, 2012

Im running into issues on buying a 2nd house. My current house im living in now is under a FHA loan. The bank im working with isn't going to well. Very hard to reach them or get a responce. I was going to go conventional on the 2nd house, but at the last min they said ill need at least 10% down(it was 5% when they told me to go ahead and but my bid in) I do not have the 10%. So they now want to refinance my first house conventional, and go fha on the new house. The issue with that is i need 30% equity in my house. I would estimate i have right at 20%. Also, that i MAY(they are not sure) need 6 months reserved cash for both houes? Is that the standard or the banks guidelines? Is there any other easier ways to get approved? My income/debt ratio is not a problem, however my middle credit score is just under the 680 mark. I have less then 30days before closing and very nervous here. I have aready gave them $1000 earnest money. Any advice would be great! Thanks

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I think that Harris Bank will do a conventional loan for 5% down. Let me know if you would like my contact's name over there. He is a great loan officer-courteous, professional and I send many of my clients to him.

Stephanie Lines
Your Home Company
0 votes Thank Flag Link Mon Jul 23, 2012
Hi, I'm in a similiar situation-- renting out my first house, which is under an FHA loan and buying a second house with a 5% down conventional mortgage. So far I have not heard that the 5% won't fly, but I had an appraisal issue with the new house that I am still working out.

I did have proof 6 months reserves for both houses; however, they accepted my 401K (which I can borrow against) as part of the reserves.

Are you working with a mortgage broker that can shop the loan to a different lender that will accept the 5% down ?
0 votes Thank Flag Link Mon Jul 23, 2012
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