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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