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Tisha, Real Estate Pro in 90042

I am selling my home in Eagle Rock / Mt. Washington and plan to buy with boyfriend and get larger house.

Asked by Tisha, 90042 Tue Jul 23, 2013

I am listing my house for sale within the next 2 weeks in Eagle Rock / Mt, Washington and looking for the same price as was paid in 2006 by previous owner. My boyfriend and I want to buy a larger home together and should have about 20% down. The issue is that he owns a condo and does not want to sell it. He wants to rent it out when we move. He has an 820 credit score with NO DEBT and $85,000 in 401k plus $30,000 in savings. I have $80,000 down payment and much lower credit score. Is it true that he has to have the condo showing a signed lease for a YEAR AND A HALF or else cannot use the rental and has to qualify for both mortgages?? I make about $94,000 a year and he makes about $80,000 a year. We have $80,000 down payment and want a house for about $500,000.... do we really have to wait a year and a half if he wants to keep his condo? We want to keep it as a rental long term.

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11
Hi Tisha,

I would recommend that you both of you go and speak to a lender/bank/mortgage broker regarding the situation and see how much you can get pre-approved for. You can talk to someone at the bank where you have an account, or any local credit union.

I would also be happy to recommend to you a few mortgage brokers if you like.

Feel free to contact me directly with any questions/concerns.

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
DRE #01920120
Web Reference: http://www.jamietian.com
1 vote Thank Flag Link Tue Jul 23, 2013
Tisha.

Congratulations this is an exciting scenario. You are selling you home and your boyfriend owns a condo that will be leased out. Together you are purchasing a larger property together.

- Property being sold check with local Realtor request Market Analysis to verify estimated value of home in Eagle Rock. Hopefully, there is equity. Estimate equity used for purchase of new home.

- Boyfriend's condo contact Realtor in area. GET market analysis of estimated rents in area. CHECK WITH LENDER FOR TERMS OF LEASE AND LENGTH REQUIRED. Verity if lender allows new lease agreement in qualification for new property. In my opinion it does not make sense that you would have to wait year or year and half after lease executed before purchasing new home. depending on actual lease lender will calculated condos. PITI and determine if lease amount is positive of negative debt.

- Calculated estimated net for sale plus money available for down payment and closing cost of new property. For new home about $500,000- based on information provided seems can do.

CHECK WITH LENDER FOR REQUIREMENTS ABOUT THE CONDO LEASE. GOOD LUCK!

GAIL MERCEDES COLE
EXP REALTY
310.853.9933
0 votes Thank Flag Link Thu Jul 25, 2013
Thank you for your rely!
Flag Fri Jul 26, 2013
Yes you need to show a contract and cashier check deposit for the lease. and rental is not allowed to qualify. In regards to qualification it. You that makes 80K has debt? and what is your middle fico score of the 3 ficos. In regards to lending I suggest you to talk to an experience loan officer.
0 votes Thank Flag Link Wed Jul 24, 2013
I actually make $94,000 and he makes $80,000 but my middle score would be about 660 and debt paid off except a car payment. When you say rental is not allowed to qualify what exactly do you mean? I have been told by mortgage broker that he has to qualify for both mortgages with his income even though one would have proof of being rented.... Is that true for ALL banks? He would have to qualify for his HALF of our mortgage PLUS his mortgage on the condo too even though it was being rented?

Thanks!
Flag Wed Jul 24, 2013
It sounds that you're on your way to fulfill your plan.
You need the right real estate agent and mortgage broker for the job. But, there are some questions like how much is your boyfriend's property payment (PITI)? What's your debt and fico score?

Let me know if I can help you,

http://DouglasPerez.pw
0 votes Thank Flag Link Wed Jul 24, 2013
I would recommend that you work with a lending broker. They would be able to guide you in the right direction and let you know exactly where you stand. I am very familiar with the Mt.Washington/Eagle Rock area. Please contact me if you need a recommendation for a Mortgage Broker. I would also be happy to help you list and/or buy your new home.

Carmel Casas
Tarbell Realtors
323-497-7841
ccasas1@yahoo.com
0 votes Thank Flag Link Wed Jul 24, 2013
Having an income property (such as the condo) is a good strategy. In order to give you sound advice a good loan officer needs to take a look at all of your assets and debts and calculate the best way to go. Direct lenders such as BOA or others have their own set of criteria while a loan broker may have other places to shop your loan and other criteria.
I encourage you to continue talking to other loan brokers, I have a good referral if you need one.
0 votes Thank Flag Link Wed Jul 24, 2013
There are many lenders and they have different criteria. The Big Banks are pretty much uniform in their approach. Work with a Loan broker they will be able to find something for you
0 votes Thank Flag Link Wed Jul 24, 2013
Thanks for the hope!
Flag Wed Jul 24, 2013
Tisha:

The key point you make in your inquiry is that you have a 'much lower FICO score.' If you are buying a new property together, both your scores will factor into your affordability. In addition, it sounds like your boyfriend does have a mortgage on his condo which will count as debt towards his ratios.

I highly suggest that you contact Natalie Salins at Prospect Mortgage and discuss your situation with her. She is adept at qualifying complex mortgage scenarios and is highly ethical. Natalie is based in Los Feliz and can be reached at 323-644-1200 or natalie.salins@prospectmtg.com. Please let her know I referred you to her.

An important related issue is your strategy for finding a new home. As you may know, it is a seller's market right now, which is great for the sale of your Eagle Rock home but not so great for finding something quickly in Mt. Washington. Even with your strong qualifications, you will be facing a competitive multiple offer situation. Is you plan to live with your boyfriend in his condo while you house searching? If so, this will give you flexibility to both be patient and to be ready to act when the right property appears. If you will not be living in his condo, I suggest you consider finding a short term rental for 3 to 6 months to give you breathing room and confidence during your search.

As a broker who specializes in Northeast Los Angeles and Pasadena/Altadena, I am happy to offer you a no cost, no obligation consultation to help you explore your options and challenges.

Good Luck!

Best,

Meredith McKenzie'
Associate Broker BRE #01142186
Podley Properties
626.344.9755
arroyolover@gmail.com
0 votes Thank Flag Link Wed Jul 24, 2013
Hi there,
I just sent Natalie a message and told her you sent me.
Flag Wed Jul 24, 2013
Thanks so much! We will be buying in long beach so I am selling here in Mt washington, Eagle rock and moving to Long Beach closer to the water as he surfs. So, I will not be trying to buy in this INSANE market over here... Just feel this is the time to sell in order to get the best price for my house and move on with our future plans.

Thanks so much!
Flag Wed Jul 24, 2013
Tisha that is absolutely NOT TRUE. What would happen is that we take 75% of the market rental value for the condo and use it as part of the qualifying monthly income. He would not have to find a tenant and provide executed leases yet.

I would most definitely be available to help you through the process. I can let you know exactly what documents you need so that we can provide you with a pre-approval letter. We can go over rates, estimated monthly payments, closing costs, etc. but I can assure you the condo wouldn't be an issue as far as needing it rented for any period of time.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Jul 24, 2013
Thank you so much! That is great news! I was told by my broker that he now has to qualify for both loans and cannot use the other property until it has been leased for a year and half with signed agreements. Due to all the people who defaulted when the market crashed and they bought new homes at low prices and then defaulted on the old homes that were under water. We would have a $70-$80k down payment and 2 incomes making $80k and $94k a year... he has an 820 credit score and NO DEBT and I have about a 660 score right now which I am working on.... We are looking for a house around $500k which is would be a payment for me lower than my current mortgage and SAVE me money.
Thanks so much for your reply!!!
Flag Wed Jul 24, 2013
Tisha,
You best bet would be to speak directly to a lender/broker as Jamie stated below. As there are a number of different loan programs out there, each with different qualifying criteria, you would be off to a good start by at least getting a pre-approval on a loan, and see how much "house" you can afford based on the situation of each of you. Then you can determine where you stand as far as obtaining the loan, what your expected interest rate would be, and get a clearer answer on how to proceed with the condo your boyfriend owns. I have a couple of qualified brokers to whom I can refer you.

Also, I would love to provide you more information regarding the house you are looking to sell in Eagle Rock, and get you a Comparative Market Analysis for this particular property. This would provide you a figure on what you can expect to sell it for, as well as how quickly homes are moving.

Finally, please consider getting in touch with me in regards to listing your current property and/or purchasing your new home. I can give you details on how you can get $1,000's at closing on each of these transactions.

I look forward to hearing from you soon.

Best regards,
Alan Kurpiewski, Realtor®
CA BRE 01912043
(619) 35-HOUSE
(619) 354-6873
http://www.homes4schools.com
homes4schools@gmail.com
0 votes Thank Flag Link Tue Jul 23, 2013
Hello Tisha!

I am going to profile your question with a particular mortgage company tomorrow in the morning.

I also specialize in the Silver Lake, Atwater Village, Eagle Rock, and Mount Washington areas. Please put me into consideration as your listing agent. Kindly take a moment to visit my quick 45 second video about how I will market your home as a listing agent at http://SilverLakeBroker.com

After I speak with the lender in the morning, what is a good number to reach you?

Thank you Tisha!

Sam C. Martinez
Broker / Associate
Keller Williams Realty
(323) 250-3770 Direct
Sam@SilverLakeBroker.com
http://SilverLakeBroker.com

DRE# 01896142 Type: Broker / California
0 votes Thank Flag Link Tue Jul 23, 2013
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