James L Thompson

Hi J,

There are several programs available for your situation. 80% Loan-To-Value (LTV) is probably the best guideline to use. With the 800 score there are some Alt-A products at 80% LTV. You can go NIVA (no income verified assets). You won't have to disclose income and we would just verify assets. Another option is to look at your tax returns and utilize your capital gain income. Your Schedule E would have to show 2 years receipt of gains and prove that they are expected to continue. We can also look at investment/dividend income.

As far as the rate differences. There is some fluxuation in rates on primary vs. 2nd home vs. investment property, but with an LTV under 65% they are generally very similar across the board. Over 65% LTV you will see a difference in rates to the upside but nothing crippling.

Example at 80% LTV self insured: Primary Residence Rate = 6.875% 2nd Home Rate = 7.25% Investment Property Rate = 7.75%

Shoot me an email to pursue further for you. Thanks for your question!! - Tue Jul 17 2007, 14:28

It depends on the combined payments as well as the quality of your first mortgage. Basically which interest rate/payment combo is cheaper. Whatever saves you the most on interest payments and attacks the principle most aggresively. - Tue Jul 17 2007, 13:05

Just a note that not all lenders that work nationwide are trying to "fool" you. Some of us actually have lived in and know areas outside of our current home address! It's about what they can do for you not where they are located. Are you going to take a higher rate and adjustable because the broker is local or are you going to go for a fixed at a rate and a payment you will be able to manage from a broker in NH. The bank that your local lender will use is most likely not going to be in your local area. You should beware of individuals who try to deter you from competing!! - Tue Jul 17 2007, 12:23

Beware...your best lender may not have a Florida address. Shopping local is not always the best option. Forcing competition is your best weapon. Investigate: Who are their banks?, what are their specialty programs?, how do they do business?, what are their value added services?, etc. I work out of a branch in NH, but do business nationwide (a lot in FL). Don't look for a good lender in your geographical area, look for a good lender that can handle the area of expertise you need to develop the loan specific to your needs and provide the best service. - Tue Jul 17 2007, 11:15

http://www.city-data.com for demographic info. Thorough stuff! - Tue Jul 17 2007, 12:07

There are a lot of variables involved. Get an accurate comp check on your current property http://(www.zillow.com) is a great site if not in NH or ME or talk to a local realtor or appraiser. Assets, FICO, Income, employment are all still going to come into play. This is not a question someone can just throw a number at without several considerations. If they do...run away!!! Example: if you sell your current home for 250k with 125k remaining on current mortgage, in general that gives you the 125k difference in assets. If your new purchase is for 300k, the fact that you sold your home and pocketed 125k makes little difference unless utilized for down payment or reserves/assets. You can have 125k in assets and if your FICO is 515 and you were late 60-days twice on the mortgage for the house you just sold, you will be stuck with a non-prime lender with higher rates due to the mortgage lates. Can be complicated!! No set standard. It's a case by case market. - Tue Jul 17 2007, 11:50

Congratulations as well!!

I will third what John wrote. Remember, you will most likely be shopping for financing as well as a home. There are some free publications available from the Federal Reserve Board and Hud: "Buying Your Home - Settlement Costs and Helpful Information" and "Home Mortgages - Understanding the Process and Your Right to Fair Lending". Be proactive and learn as much as you can. Don't take what is spoon fed to you. Shoot me an email and I will send you any educational material you need. Best of luck to you! - Tue Jul 17 2007, 11:41