Home Buying in Sarasota>Question Details

Cynthia Boar…, Home Buyer in Kentucky

Hello, I am thinking of purchasing a second home in Sarasota area, I own my own home in Ky. and wish to rent

Asked by Cynthia Boardman, Kentucky Mon Sep 22, 2008

it out. How hard is it in todays market to get a bank to loan money on a second house? Do I have to produce a lease agreement regaurding the rental property showing I have a good renter signed on for X amount of years? How does this work and are banks willing to do this in these hard times?

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6
Yes, we're still doing mortgages to purchase and refinance second homes. There's no shortage of funds available, and rates are still near historic lows. The most recent seizing up in the credit markets that's been front page news the past few weeks has *not* been in the primary mortgage market. There's been no interruption in the origination and funding of residential mortgage loans.

If you're buying a second home, we need to show that your income can support the housing expenses for both your current primary residence and the new second home. Rental income would not be considered in underwriting, because that's only for investment properties. If you're planning to rent out your primary residence, then it won't be your primary residence any longer. Maybe your new home would be your primary residence?
1 vote Thank Flag Link Mon Sep 22, 2008
Cynthia,
it's pretty cut and dry right now.
you must now have 3 major itms
1.good credit 650 or better,
2. 20-25% down
3. document income
as far as showing a lease you can always draw 1 up and summit it but banks are lending less but you can still get loans
Before you may not have needed these 3 things today you need all 3. i would suggest going to a leder and getting pre-approved for when you are ready to buy with a loan, most if not all sellers will not look at offer without a pre-approval letter in this market, and if you buy a short sale or foreclosure the bank will not look at any offers without a preapproval letter. If you need some lenders let me know and i can email you 4 or 5 for sure
Let me know if you need my help
David and wendy Leventhal
941-383-6411
0 votes Thank Flag Link Tue Dec 16, 2008
Hi again Cynthia, James Wheeler below whom also answered your question and whom I highly recommended to you previously, is a mortgage specialist with a national company that has access to many lenders for many different types of loans. He is not affiliated with my brokerage company in any way and he is not obligated to write loans with just one lender. These might be important issues to consider when selecting a mortgage broker. In all my years of selling real estate, I have not come across anyone more knowledgeable or reputable and again, I would urge you to give him a call for help with your concerns.

My office is in Sarasota and I live in Sarasota and I am a Accreted Buyers Agent. I would be happy to help you in any way that I can.

My best,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
941-350-4297
tmf4257@mac.com
http://www.floridawestproperties.com
0 votes Thank Flag Link Tue Sep 23, 2008
Cynthia,

You have received excellent advice on your question. We would like to emphasize the importance of having your financial questiona responded to by a mortgage specialist, prior to continuing toward your untimate goal. It would be beneficial to be pre-qualified for your mortgage because it would clarify for you what price range you should consider. Additionally, with a "letter of qualification" you would be able to at quickly on any "great" opportunity that presented itself.

As a rental investment property, location is a critical aspect of your purchasing plan. Proximity to beaches, golf courses, transportation, and shopping are important features to consider.

Approximately 10 years ago we took the same route you are considering, being an absentee investment owner and were blessed by finding a great rental management company to support us and would be happy to share our rental expertise with you as well as support you interest in purchasing the right property.

Good luck.

The "Eckler Team"
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes Thank Flag Link Tue Sep 23, 2008
Hello Cynthia,

If a second home is in your future, here are the financing facts you'll need to talk about with your lender to obtain the loan you need.

The first thing you should realize is that the lender views loaning money on a second home somewhat differently than financing your primary home. The rationale is that since you have a primary home, should a “push come to shove” money crunch emerge, you might forsake making payments on the second home to preserve the equity on your primary residence.

That's why most qualifying and underwriting guidelines are stiffer for second-home loans.

Additionally, the secondary market where the lender sells the second-home loan has different requirements to qualify second-home borrowers.

Although qualifying varies from lender to lender, most second-home loans require a 20 percent down payment. This is true for both an existing home and for a new second home that you plan to build. And the 20 percent down applies to both fixed-rate and adjustable-rate mortgages.

It's often tougher qualifying for a second-home mortgage because the lender will count not only your long-term revolving and installment debt (like credit cards and car loans), but the payment you're making on your first mortgage as well. This often disqualifies the potential borrower or at least minimizes the amount for which a borrower may qualify.

Please call Bob Lambert with Michael Saunders & Co. Mortgage Company at 941-313-0205. He can answer your questions in greater detail and also pre-qualify your for your second home loan.

I am a certified relocation specialist and would be happy to assist you in purchasing your new home in Sarasota. All my best to you.

Debbie Dunnick
Realtor
Michael Saunders & Co.
http://www.DebbieDunnick.com
http://www.MichaelSaunders.com
941-349-3444
debbiedunnick@michaelsaunders.com
0 votes Thank Flag Link Mon Sep 22, 2008
Hi Cynthia, second home mortgages should be easily accomplished with good credit and good terms. I highly recommend getting pre qualified before you look to purchase, then you will know what number you will need to stay with. I have an excellent referral for a mortgage broker here that would be able to guide you. It might be worth your time to call him for advice and to ask some questions. James Wheeler 813-600-3428

Let me know if I can help you with your purchase here.

My best,
Terri
941-350-4297
tmf4257@mac.com
http://www.floridawestproperties.com
0 votes Thank Flag Link Mon Sep 22, 2008
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