Home Buying in 32803>Question Details

Nep200n, Home Buyer in Orlando, FL

I want to buy. I can put up to 10% down on the homes in my price range. BUT I am under water in my current mortgage. What are my chances of buying?

Asked by Nep200n, Orlando, FL Sun Jul 1, 2012

my credit scores are 809, 812, 789

Help the community by answering this question:


If you rent out your current home the lender will take this into consideration in terms of your income. However, if you want to sell later on you may not qualify for a short sale (HAFA) program for at least 12 months. You may qualify to short sell after 12 months but it would be a traditional short sale. Obviously you cannot short sale prior as it would take your credit ratings down and you would need to wait 2 years prior to being able to obtain another mortgage. Your best bet is to find a tenant to offset the mortgage payment so that your income is sufficient to qualify for the new loan. Talk to your lender or agent, if you have one - they should have explained your options. If you don't have a realtor, please feel free to call me, I'd love to help.
Jennifer Steele
1 vote Thank Flag Link Thu Sep 27, 2012
Hi There -

It all depends on how under water you are on your property. Lenders do take into account negative equity when they are trying to help you get a loan. With that said, as long as your next property is bigger you can do low money down convention financing. The underwriters want to be sure you're not purchasing just for an investment.

When was the last time you had an agent to a market analysis on your home? I work with a lot of listings and what I'm noticing is that today's Sellers aren't aware of how good the market is for them to sell. Properties are being listed and sold for higher now than several months ago because inventory is very low.

Even before getting pre-approved for a new home, I'd definitely recommend you have an agent who's aggressive with their marketing do a Comparative Market Analysis on your current home. You might be in a better situation to sell than you think.

Best Regards,

Kase Ellers
Prudential Florida Realty
(407) 463-9315
1 vote Thank Flag Link Mon Jul 2, 2012
Yes you can, but you need to do so in a managed fashion.
A lender could see this as a set up for a strategic default on your existing home. They may see other scenarios playing out also, each leaving the bank inheriting a deficiency. Clearly you can see the concerns the banks may have.

Meet with a multi-dimensional real estate professional to assess your situation and the alternatives available to you. The lender your agent recommends will be essential in achieving the outcome most beneficial to you.

Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
1 vote Thank Flag Link Mon Jul 2, 2012
Depends on a lot! Debt to income, current payment history, etc. Call me ASAP to discuss.

Vincent Paige |REALTOR® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
E-mail: vince@thepremiumproperties.com
0 votes Thank Flag Link Tue Jun 4, 2013
Tom Songer & Associates strives to provide, with total commitment, the highest quality service, in a traditional yet progressive manner, combining time-honored policies with state-of-the-art technology. Without losing the interpersonal skills necessary to sustain superior levels of customer and client satisfaction we assist our clients in achieving the best possible results from real estate transactions of all types. In all of this, we intend to continue solid growth and corporate profitability through exceptional performance. Celebrating 25 Years In Central Florida Top 100 Realtors Transaction 2006-2010

We specialize in short sales

Market recap http://c.ymcdn.com/sites/www.orlandorealtors.org/resource/re…

See our profile for references

Thank you Tom
0 votes Thank Flag Link Sat May 11, 2013
Depends on your last year to two years of payment history. they dont allow you to jump ship anymore!
0 votes Thank Flag Link Wed Sep 26, 2012
How can you buy another house if your current home is under water? And all of the realtors here are recommented you to get more into debt. I love America. Debt is king.
0 votes Thank Flag Link Wed Jul 4, 2012
Your chances are great if your income debt ratios are in line, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jul 2, 2012

I have 3 questions:

1. are you self employed?

2. after you put down 10%, how much will be left in assets/reserves?

3. are you buying UP?

Contact me http://www.pro-option.com
0 votes Thank Flag Link Sun Jul 1, 2012

I dont see why not, to make sure just contact me and we'll take it from there.

Easy enough?
0 votes Thank Flag Link Sun Jul 1, 2012
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