rented ouw home in NC, want to buy in FL, is that possible?

Asked by Alejandra, Outside U.S. Thu Jan 5, 2012

I have a house in NC that was bought with my husband's VA loan, which has been rented recently and we have never been late in any payments. We knowlive in FL and will like to use my VA loan to buy a home in FL instead of renting. Both of our credits are in the low 700's. Are we daydreaming thinking that someone will actually lend us money since we have a mortgage already? how long do we have to wait to be able to qualify for a mortgage?

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Dana Kolodney’s answer
Dana Kolodney, Agent, Wesley Chapel, FL
Mon Apr 9, 2012
Actually the answers below are fairly correct. However, here is the real guidelines. There are published guidelines and the real world guidelines.

Real world: VA uses a VA eligibility guarantee formula, you may qualify for VA financing if all of your eligibility is not used up. The formula is based upon the mortgage amount of the home you have currently financed with VA as opposed to the amount of the mortgage you will be taking out on the new home purchase. If you are current active duty and you have orders of transfer, different rules apply. You may be eligible for a new VA loan and not be subject to the latter rule.

If that is not the case (not active military or you do not have enough eligibility left) Than you may qualify FHA/USDA/Conventional if you fall into the income to debt ratio formula for the particular loan product using your full PITI payment on your existing mortgage and new mortgage. Since you have excellent credit you can go as high as a 50 back end ratio. Meaning your existing gross income x 50%, less existing minimum monthly payments that show on your credit report. What is left over is the new housing payment you can qualify for.

In order not to use your existing mortgage payment in your income to debt ratio formula you must show the rental in your federal income tax returns for 2 years. At that point a lender will use 25% of that payment in your ratio calculation. Prior to 2 years the entire payment will be used against you unless you are active military with orders of transfer. I have a lender that is a VA expert. Let me know if you need her help.
0 votes
Lisa Reeves, Agent, Tampa, FL
Thu Jan 5, 2012
Alejandra - first you can only have one VA loan at a time. If you have one on your home in NC then you can only finance FHA which is 3.5% down payment, conventional, or in some areas of Wesley Chapel USDA which is 100% financing. You will be able to use your rental income if it is at least 1 year old. Otherwise you will be limited to the amount of home you can buy based upon debt ratios. So if your NC home was bought when you had lower income and you don't carry a lot of debt - you may be able to purchase another primary home. However you will be able to buy much more next year when you rental income is a year old.
0 votes
Catherine Sm…, Agent, Clearwater, FL
Thu Jan 5, 2012
Hi Alejandra,
Make sure you have a lease agreement in writing and signed for at least one year. Some lenders may require seasoning. I work with various and flexible lenders with different requirements. The good news for you is a lender will look at your credit score, an above 710 is great! Not been late on payments is another plus. Good for you!
Where in Florida are you interested in residing? If it is anywhere in the Tampa bay area, and/or Wesley Chapel area, please feel free to call me. I have a couple of lenders in mind that may assist you, or at least give you a road map to let you know how much you may qualify for, and you may determine your next step. Here is my contact information, call me @ 813-388-3234.

For Free, the web address below you may opt in with e-mail address and search MLS just like an agent (all central Florida) for homes in "real time", you may put in your own criteria. Also, set up your own back office, it is amazing, and was created with you in mind. Check it out, you will never be charged a fee, and allows you to conveniently communicate with me on your time. Good luck, all the best to you!! Sincerely, Cathy

Catherine Smith, SFR, CSP,
Broker Associate/Realtor
Charles Rutenberg Realty
Direct: 813-388-3234
E-mail: CathySmith10@aol.com
Web: http://www.FloridaLuxuryHomesToday.Listingbook.com
0 votes
Bill Szydlow…, Agent, Tampa, FL
Thu Jan 5, 2012
Alejandra,

most lenders will let you use up to 75% of the rental income to offset the current mortgage. They will also require from 2-6 months, depending on lender, for reserves. I am very familiar with this because I have a few customers that have bought or are buying homes, having rented their previous homes. You have the credit capability. It is just setting you up with the right lender that will maximize your rental income and total buying capability. please feel free to contact me so that we can talk specifics.

Bill Szydlowski
813-323-4443
billszydlowski@msn.com
Web Reference:  http://www.tampamyhome.com
0 votes
Jeffery Lonas, Agent, Clearwater Beach, FL
Thu Jan 5, 2012
Alejandra, your not daydreaming!
The 1st step would be to see how much you can be pre-approved for your VA loan.
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