Home Selling in Amarillo>Question Details

Jerrod, Both Buyer and Seller in Amarillo, TX

If we were to sell our current house OWC, would that allow us to get a mortgage on a new house?

Asked by Jerrod, Amarillo, TX Thu Feb 9, 2012

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Do you own the house outright? If not how can you carry?

If you do own it outright, why would that be a factor in the new house, unless you plan to count that payment as income. Then the lender might want you to show it as rented for a year or two.

Best thing to do is sit down with a lender and discuss your specific circumstances. Your income, your debts, your assets and what your intentions or dreams are.
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0 votes Thank Flag Link Thu Feb 9, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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This would be treated as a rental to most lenders. To be able to use the OWC payments to offset the mortgage you would most likely need to show 2 years of landlord experience through tax returns. If you have not had previous landlord experience you may need be able to carry the debt load of both mortgages to qualify for a new house.

This is a discussion you will need to make with the lender or broker directly but that is generally how lenders will look at your situation.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
0 votes Thank Flag Link Thu Feb 9, 2012
There would be qualification issues with the Lender you would want to clarify first! Lender call on that one...but, it can be done under certain circumstances. Good luck and let me know if I can be of further assistance.
0 votes Thank Flag Link Thu Feb 9, 2012
OWC or owner will carry deals are about like a rental being rented and lenders look at them as less than a liability as long as they are rented and you can produce a years lease. Ask your lender how they look at them, I would think they will want to see how it is structured and since there are no rules about OWC deals they will need to see it in writing.
0 votes Thank Flag Link Thu Feb 9, 2012
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