Home Buying in Penn Valley>Question Details

New Home Buy…, Home Buyer in 95946

can i buy another bank owned home right after closing on one?

Asked by New Home Buyer Lww, 95946 Thu Dec 16, 2010

We have found another great home for an awsome price, and were wondering if we could buy another one soon after closing a home loan? would it take a substantial down payment to do this? We already have equity in the one we just purchased.

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Answers

3
This would be considered an investment property if it's within 50 miles of your current residence. Minimum down payment would be 20%. You would need to qualify with both mortgage payments (PITI) being reflected in your debt-to-income ratio. Also, HOA if applicable.

Reserves required would be two months PITI on current and six months on the investment property. (+HOA)

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Fri Dec 17, 2010
You can buy as many as you wish and can afford. Any restrictions would be by your lender and not the bank who owns/sells the home, i.e. 2nd/investment homes may require a higher down payment, etc.
0 votes Thank Flag Link Thu Dec 16, 2010
If you have cash or can get financed, sure. Just can't claim that both are going to be your primary residence.
0 votes Thank Flag Link Thu Dec 16, 2010
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