Financing in Milpitas>Question Details

EC, Both Buyer and Seller in Santa Clara County, CA

What loan programs out there will let me buy a house with my current condo under water?

Asked by EC, Santa Clara County, CA Tue Mar 27, 2012

I'm looking to buy a house (about $500k). My primary residence now is a condo - I owe 305k and its under water (valued at about 200k). I plan to rent the condo once I buy. Our total income is 180k and we are looking to put 5% down. Monthly debt is about $700 plus the condo mortgage - $1700. I was told that since I live in the condo, they count that mortgage as monthly debt so my total debt to income ratio qualifies me for $310k. Does that seem right?
Side note - I did a short sale on another property 3 yrs ago. Credit is back to 700.
Are there FHA loans that I would qualify for? Or other loans that would allow a low down payment?

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