if i purchace a a home march 1 2009, fha loan at 5.50 loan, what do i need to purchace a second home

Asked by Chris, Bellflower, CA Wed May 13, 2009

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Dyanna, , California
Wed May 13, 2009
Chris you would now be considered an investor and would need about 10% to 20% for down payment and make enough to cover both mortgages within a certain debt ratio. Sitting down with a lender would be a good idea.

1 vote
Kolsky Realty, Agent, Long Beach, CA
Wed Apr 20, 2011
I think the best advice,o meet with a professional of your choice, and review information to make your next purchase a smart choice..

Best of luck,

0 votes
Joe Mendez, Agent,
Wed Mar 30, 2011
Good question and one that a lot of my clients are asking these days. I have had several clients who have gone thru Bank of America or other big lenders and what has occurred is that in order to purchase a second home, your salary must be enough to qualify you for BOTH mortgages. And if it is an investment property and there are current rents, lenders are NOT adjusting the ratios for the rents unless you have already had a renter for 1 year. Which is silly because you won't have that as a new buyer on a second property. But as others have stated speaking with a lender or a variety of lenders is a good idea. Things seem to keep changing in the lending world today.
0 votes
Scott Chapman…, Agent, Lakewood, CO
Wed Mar 2, 2011
At this point meet with a lender to plan a strategy for your next purchase.

thx scott chapman

562 572 2275
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Tue Aug 17, 2010

In addition to what others have advised (ie. good credit, 10-20% down, etc) you may also be require to have 25-30% equity in your current home. Lenders are very concerned about "buy and bail". That is when you purchase a second home (even though you can qualify for it) and then walk away from your first home. Since you purchased a year ago using FHA, there is a good possibility that you do not have that level of equity.

Your best bet is to get pre-approved by a great lender before you start looking. That way you will know how much home you can buy, whether it is as a new primary residence or as an investment property. I would be happy to give you a referral to one or two great local lenders if you need them. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
0 votes
Connie Wilda…, Agent, Long Beach, CA
Tue Jun 8, 2010
Have good credit, 20-25% down, and a lender willing to give you a loan... good hunting!
0 votes
Sandy Carroll, Agent, Seal Beach, CA
Wed May 26, 2010
Good credit, some cash, and a good realtor.
0 votes
M.D.J, , Los Angeles, CA
Wed May 13, 2009
You just need to qualify...If your going to purchase a property to rent out then 20% to 25% minimum down payment is needed...If it's a "second home" as in vacation then 10% minimum would be needed along with income & credit qualifying.

Any lending or loan questions feel free to contact me.
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