Need a bigger home. Have home in S. GA paid for and rented out. current home was re-fied 2009. We want to rent it out, too. Don't have 20% down.

Asked by Juju, Atlanta, GA Mon Apr 2, 2012

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7
David Herren, Agent, Atlanta, GA
Thu Apr 5, 2012
You have some great responses here. If you are not already working with a Realtor, give me a call and I will be glad to help find the right home for you in Atlanta.
1 vote
Kim Jones, Mortgage Broker Or Lender, Atlanta, GA
Mon Apr 2, 2012
I forgot to mention, we have Conventional loans starting with down payments as low as 3% if you qualify. Let me know if I can help!

Warm regards,
Kim Jones
Senior Mortgage Banker
678.468.4046 24 x 7 Cell
770.822.2083 Office
678.518.6917 eFax
kdjones@brandmortgage.com
CLICK HERE TO VISIT MY WEBSITE AND APPLY FOR YOUR HOME LOAN: http://kdjones.brandmortgage.com
FIND ME ON LINKEDIN: http://www.linkedin.com/pub/kim-jones/a/a68/109
FIND ME ON FACEBOOK: http://www.facebook.com/KimJonesHomeLoans
3328 Peachtree Rd. Suite 200 Atlanta, GA. 30326
NMLS# 75615 | 545217
Web Reference:  http://www.kimdjones.com
0 votes
Kim Jones, Mortgage Broker Or Lender, Atlanta, GA
Mon Apr 2, 2012
On your South GA property only the property taxes, home owners insurance and any HOA dues will be counted as debt against your income since there is no mortgage. We would count 75% of the rental income towards your income.

But regarding your current home, if you can qualify to carry both your current mortgage and your new mortgage, then you won't have a financing issue (debt to income ratio issue). But in the even you do not qualify to carry both mortgages, you may need more money down. You cannot count the new rental income you will receive towards your income unless you can prove you have a minimum of 30% equity in your departing (existing) residence. We would require an appraisal on your existing home. And if you do have 30% equity and plan to use rental income to offset the mortgage payment, we would only count 75% of the rental income to offset your mortgage. We would also require 6 months of mortgage payments for both houses as reserves (on top of your down payment).

Warm regards,
Kim Jones
Senior Mortgage Banker
678.468.4046 24 x 7 Cell
770.822.2083 Office
678.518.6917 eFax
kdjones@brandmortgage.com
CLICK HERE TO VISIT MY WEBSITE AND APPLY FOR YOUR HOME LOAN: http://kdjones.brandmortgage.com
FIND ME ON LINKEDIN: http://www.linkedin.com/pub/kim-jones/a/a68/109
FIND ME ON FACEBOOK: http://www.facebook.com/KimJonesHomeLoans
3328 Peachtree Rd. Suite 200 Atlanta, GA. 30326
NMLS# 75615 | 545217
Web Reference:  http://www.kimdjones.com
0 votes
Tim Brown, Mortgage Broker Or Lender, Alpharetta, GA
Mon Apr 2, 2012
Juju,

The short answer is you can purchase the new home with less than 20% down. Here are the caveats: You must qualify with your current home's mortgage payment counted against you even though it will be rented out. Additionally you must show you assets to cover three months (FHA) or six months (conventional) of mortgage payments on both your existing AND new primary residence if you have less than 30% equity in your current home, which I suspect you do or you would be selling it.

If you can meet these two requirements and still have at least 5% for a down payment and good to excellent credit, you should be able to purchase the new home.


Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
tbrown@getevolved.com
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959
NMLS#: 168281
0 votes
Fred Yancy, Agent, Woodstock, GA
Mon Apr 2, 2012
Your situation is certainly do-able. What area of town would you like to live? I'd be more than happy to assist you in your home search. To see properties in your area, you can go to my website - link below.
0 votes
Sally W. Ham…, , Atlanta, GA
Mon Apr 2, 2012
Do you currently have a FHA mortgage? If no, as stated before you are eligible for a new FHA mortgage. You need to discuss with a lender.
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Mon Apr 2, 2012
For a new primary residence, you might be able to get an FHA mortgage. It would require a 3.5% down payment. If you have an FHA mortgage on your currnet home, then that would probably not be an option for you.

There are also some conventional mortgage options that do not require 20% down.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes
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