Home Buying in 19136>Question Details

mcgaughran01, Home Buyer in Glenside, PA

want to move but can't till house sells thinking about renting till the market rebounds will not have 20 down maybe take a loan out on 401k

Asked by mcgaughran01, Glenside, PA Wed Jun 20, 2012

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Just to bring in the down side 10 Do you have a mortagage now? 2)Do you have enough income to carry two mortagages? 3) Do you have a pre-approval or a pre-qualifition? 4)Who will manage the rental property?and most importantly is have you had any face to face discussions with a Real Estate professional that handles these types of transactions. If I'm not mistaken most mortagage companies want the rent seasoned for at lease one year before it can be used as income. Olease call me if you have any questions at 215-725-5700 X49

Philip J. Cunningham Sr.
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia,PA 19152
Web Reference: http://www.GreatPaRE.com
0 votes Thank Flag Link Wed Jun 20, 2012
As already mentioned FHA doesn’t require 20% down, but there are some quirky guidelines about renting a former home and debt ratios. Have your realtor introduce you to the local lender they trust the most and get pre-approved. Furnish all of the support documents, not just a credit pull, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Wed Jun 20, 2012
I totally understand what you are trying to do. Renting out your house is not a bad thing in the eyes of a mortgage company. You just need to get that lease and make sure you do things correctly (find renters who will take care of your house and understand you may need to relist it for sale/rent in the future).

I imagine you have your home all ready listed For Sale with an agent. If your agent doesn't do rentals or you want someone else marketing the rental I suggest contacting Mark Malfara out of Prudential Fox and Roach in Chestnut Hill. He is a team member of mine and he has tons of experience helping people in your situation. I work with him and would also be able to help and have lots of rental experience aswell. In this market we typically have this kind of conversation from day one with our potential clients. Its a hard reality but we want them to explore and know all options.

Best of luck. Mark can be reached at mark.malfara@prufoxroach.com and myself at scott.maritzer@prufoxroach.com

I suggest emailing us any information on your property so we can get a better feel for your current home.

Thank you.
0 votes Thank Flag Link Wed Jun 20, 2012
Hello mcgaughran01,

Every financial expert will tell you NOT to take out 401k for your down payment.
Even though you will be paying PMI it is still a better alternative. even though PMI is now tax deductible the compound interest that you may gain from the 401k will be greater, not to mention the penalty you may incur on your 401k.

Please call me to discuss your options. You may want to add a purchase contingency to the property you are currently selling. Your worst case scenario is that you will rent for a bit....so what.

Depending on your Credit Score and monthly income you may be able to buy something with 3.5%down and a sellers assist of up to 6%.

Call me so we can talk.

Best of Luck,

Alexander Shulzhenko
Realty Mark Cityscape
267 738 0886
http://www.eRealtyFind.com
realexs@gmail.com
0 votes Thank Flag Link Wed Jun 20, 2012
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