how can we go about purchasing a second home, I heard we won't get approved because we are underwater in?

Asked by Sergio Torres, San Bernardino, CA Thu Apr 30, 2009

equity (we owe more than what our current home is worth?)

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Alex Montelo…, Agent, Seal Beach, CA
Thu Aug 29, 2013
I am not sure if you were able to make that purchase at the time of the post but values have definitely risen since 2009. It might be time to revisit the possibility of purchasing that second home. I would be glad to help you assess the current value of your home.
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Alexander Gr…, Agent, San Jose, CA
Thu Aug 15, 2013
I was just looking through old post and I noticed yours. If you were not able to refinance at the time of the post, I can certainly help you out now. You can call me at 408-352-5147 or email me at You can check us out at I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
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Michael Barr…, Agent, Irvine, CA
Thu Apr 30, 2009
Hi there Sergio. I would recommmed you sit down with a professional reputable experienced lender to review your finanacial situation and the best options for you. This would be necessary for you as a starting point. Once you have this done I would then start looking for property

If you you do not know or or would like some referrals drop me a line.

Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
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Diana Margala, Agent, Rancho Cucamonga, CA
Thu Apr 30, 2009
Hi Sergio:

I agree with David and Marie, however I have heard that some lenders will not use the rental of your old home as income. Make sure you check with the lender and get pre-approved before you start looking. The reason they may not consider the rent is because they are afraid you might walk away from the home that is underwater causing more problems with our market.

Good Luck
Diana 909-945-5763
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David & Marl…, Agent, Los Olivos, CA
Thu Apr 30, 2009
I am not sure you have provided enough information to answer your question. If your present home is worth less than your mortgage but you are making the payments and your insurance and taxes are current, then the upside down equity position may not be a factor in purchasing a second home. This, of course, means that you have adequate resources for a downpayment, and will continue to have the ability to pay the mortgage on both your new home and your old home with long term steady employment or cash flow. I would assume you would be renting out the first home. In this case be sure you can qualify for the new loan using using rental income at 75% of actual rents because most lenders will want to figure in a vacancy factor. In addition to all of that you will need cash reserves to cover payments. You need to be reviewing your entire plan with a good and trustworthy loan agent who will give you an accurate picture of what you can afford without putting yourself in jeopardy.

Good Luck. Its a great time to buy!!!

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David and Marlene Macbeth, e-PRO, GRI
Santa Ynez, California 93460
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