Home Buying in Dallas>Question Details

Cathy, Home Buyer in Duncanville, TX

Can my father in law still by a second home even if he still owes $23,000 on his current home?

Asked by Cathy, Duncanville, TX Tue Aug 12, 2014

My father in law is willing to buy a second home for me and my husband. Due to i have bad credit and he only has one yr proof of income. Is there any lenders out there willing to work with us?

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0 votes Thank Flag Link Fri Aug 15, 2014
Hello Cathy,

currently there many programs in Texas available to assist your father in law. Is this home an investment or vacation home?

Thank you,

Dr Rahman
Phone: 972-517-3481
0 votes Thank Flag Link Wed Aug 13, 2014
Yes, he can but it all boils down to the lender and your father in law's specific situation. I would suggest that you talk to one or two lenders and see what the best option is.

Good luck!

Susie Kay
United Real Estate
0 votes Thank Flag Link Wed Aug 13, 2014
The answer is yes, but make sure you understand a 2nd home technically is considered a "Vacation Home" and requires 10% down. Meaning your Father in Law plans on staying there from time to time.

If you are talking about buying "Another Home" or what we lenders refer to as an "Investment Home" where he has NO plans on moving in, the down payment can be a high as 20% down.

That aside, you might just be surprised to know that you can actual finance the home and have your Father in Law co-sign for you. I've had many cases where people just had some low scores caused by some old collections or charge off, but given the choice of having their Parents buy for them, we used a little of what would have been a higher down payment to help clean up the borrower clearing the way to purchase. Just a thought.

Let me know if you need assistance. I am here in the Lone Star State.

Best of Luck!
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Wed Aug 13, 2014
If your Father-In-Law can, by himself, afford to pay both mortgages simultaneously, the answer will very likely be YES. Of course every lender has their own set of rules that will determine if he can qualify to pay two mortgages at the same time.

You just might want to run this buy your REALTOR for a referral to a lender with the solution you want.
0 votes Thank Flag Link Wed Aug 13, 2014
You will have to talk to multiple lenders and banks to see what they require. They probably will count it as investment property since it isnt his primary residence, and they typically require 20 percent down for investment property.
0 votes Thank Flag Link Wed Aug 13, 2014
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