Home Buying in Dundee>Question Details

James Reed, Home Buyer in 48195

Could I get a 100% loan on my second house? My wife and I need to upgrade and both make decent money where we could afford a pretty descent size

Asked by James Reed, 48195 Mon Mar 1, 2010

house. I just paid off all my debt. All I have is my car and 1st home that I'm paying for. My credit score is 740 . However, because I just paid off all my debt, I don't have a whole lot of savings to afford a large down payment.

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The only 100% program out there right now that I know of is the USDA Rural program which much of the homes in Monroe County do qualify for...however, it's not available on a non-principal residence (ie 2nd home). The rurals have also changed if you rent out your other home...you usually have to show at least 1 years rental history for the next purchase to count as a your principal residence.

The first step is really talking to a decent mortgage person. I do work in the Dundee area and if you want the name of someone who's familar with the programs for the area, and might be able to help, contact me anytime.
1 vote Thank Flag Link Mon Mar 1, 2010
Hi James
Outside of a VA loan, which you have to be a veteran to qualify for, a USDA Rural Development loan is the only 100% option still available. The property would have to be in a qualified rural area, meaning you'd probably have to move further Downriver. You'd have to occupy the home as your primary residence, meaning no vacation homes or rental properties. You would have to qualify for the new house payment AND your current house payment. AND your household income cannot exceed the limits for whichever county you are looking in ($81,650 Wayne County, $73,600 Monroe County).

So a lot of things need to fall into place, Speak with a reputable lender who can lay out your options for you. I happen to do a lot of these loans. If you'd like to reach me, I can be emailed at anthony.grech@bankofamerica.com or in the office at 734 528 5511.

0 votes Thank Flag Link Mon Mar 1, 2010
Could I get a 100% loan on my second house? Yes and No.

Yes, USDA, as everyone below said but, just one say this: Rural. Whatever is rural in your area that is where you have to buy, if all the other guidelines apply. Here in Minnesota, Rural is about 2 hours from down town Minneapolis / Saint Paul.

No. All programs I know will request downpayment.

Check with a local realtor about selling your current home to get the downpayment for the other property.
0 votes Thank Flag Link Mon Mar 1, 2010
A good mortgage broker could give you a definitive answer. However, I suspect that answer would be "no." First, 100% loans are nearly impossible to find in any case. VA loans are 100%. But even FHA loans require 3.5% down. And that's for primary residences. Second homes historically have had somewhat more difficult lending criteria than primary residences, and that certainly hasn't eased up in the past few years.

Unless you use some sort of creative financing, you're probably looking at 20% down, regardless of credit score or income.

Again, check with a good mortgage broker to be sure.
0 votes Thank Flag Link Mon Mar 1, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
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