how can i get a mortgage for second home without first selling my home; in case selling first house takes time?

Asked by Theresa Clark, Long Beach, NY Mon Aug 16, 2010

would also be buying new w/ children, so two additional incomes

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8
Charles D'Al…, Agent, Brooklyn, NY
Mon Aug 16, 2010
BEST ANSWER
Good Day Theresa, first thing to do is to meet with a mortgage pro to see if you qualify for another mortgage.
This will depend on the total income,credit scores and possibly the equity in your current home. This is a good start .
Second have a Realtor look at your current home to evaluate the value and estimate the selling time for it.
The market is moving along these days, for homes that are price to the market. Educated decisions are the best ones. If you do the research, and create a good team, it should work out fine.

If I can be of any assistance please do no hesitate to contact me for a free evaluation of the situation.
0 votes
Rhonda Holt, Agent, New York, NY
Fri Aug 20, 2010
Since no one knows your financial information here on Trulia. When you buy a second home you usually have to put down at least 20%, because the bank will consider your current home as your prime residence and the second as an investment (that depends on your situation). The bank will also consider how much of a mortgage you owe on your first home and your financial status.

You may consider having someone else on the second mortgage and leave you off. You can speak to a mortgage broker about that and an attorney to make sure you still go on the deed as a part owner.

Let me know how it works out.
Web Reference:  http://www.RhondaHolt.com
0 votes
Manu Kapoor, Agent, New York, NY
Mon Aug 16, 2010
You can a mortgage for a secound home.
But a lot will depend upon you financial's and credit score. Also remember to be ready to put a good down payment.
More co-signers are always better.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Aug 16, 2010
Much will depend on your overall finances, downpayment for the second home, current mortgage if any, the ability to carry two properties if needed, your credit, etc.--do visit with any qualified loan officer(s) and go from there--he/she will be your best source of information as it relates to your specific situation.
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Fajardo Dela…, Agent, Flushing, NY
Mon Aug 16, 2010
Mrs. Clark

It's funny but let me tell you sometimes these things just work them self out.
I would enjoy answering any questions that you may have.

Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
0 votes
Scott Wynn, Mortgage Broker Or Lender, Brighton, CO
Mon Aug 16, 2010
Depending upon the type of financing you have on your current home the answer to this question can vary. If you have FHA financing on your current residence then you are unable to obtain FHA financing on the new house. If you have conventional financing on the current home then there are not restrictions on the new type of financing.

With that being said you will need to qualify with both payments against you to purchase/qualify for the new house. Some people try to rent out a current home in order to purchase a new home. By doing that you may be able to include rental income to offset the mortgage debt and increase your qualifications on the new home. There are restrictions to be able to include the rental income to offset your current primary residence's mortgage to purchase a new primary residence:

1. You must have 25% equity in your existing primary residence (validated through an appraisal)
2. If you are getting Conventional financing on the new home you must have 6 months worth of payments on your CURRENT home in assets
3. If you are getting Conventional financing on the new home you must have 6 months worth of payments on the NEW home in assets

If you do not meet the 3 items above the only way to qualify on the new home prior to selling your existing home would be qualify with both mortgage payments counted against you.
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Ian A. Wolf, Agent, Morristown, NJ
Mon Aug 16, 2010
It depends on how much equity you have in your current home and your Gross household income. It used to be that you could get a bridge loan, but they can be hard to come by these days and expensive. Assuming you have equity and you debt to income ratios support it, the easiest might be to take a loan on your current home and use that money to buy the second. You may even qualify to just buy the second base on the higher income. Consult with a few lenders, and you will get a good feel for your potential options. Hope that helps.
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Mitchell Fel…, Agent, Brooklyn, NY
Mon Aug 16, 2010
Dear Theresa Clark:

You have several options that may be available to you such as a Home Equity Line of Credit on your existing property, a bridge loan or you can simply purchase the second property with a new first mortgage and pay back the loan when you close on your first home.

Of course all of these options depend on your ability to qualify for the loan. You need to meet with a mortgage banker and get your self pre-qualified. In order to do this correctly, you should bring your last two years tax returns, last three months bank statements and also have the bank run your credit report. Then they will tell you what your options are based on your qualifications.

If you have enough cash another option would be to simply buy the new house outright and put the money back into your bank account upon selling your existing home, that is assuming you have equity in the home.

If you want, give me a call and I can give you even more insights. I can also help you buy and/or sell your property if they are located in Brooklyn. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
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