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View Full Version : Two mortgages at once

Thelt
01-05-07, 09:11 AM
How hard is it to qualify for two mortgages at once? I want to sell my house and buy another one. It would be a lot easier to buy/build first then move all my stuff then sell. That would mean I had to cover two mortgage payments until I sold my old house though. Do they offer products where you pay interest only for the first year and then principal and interest for the next 29? That would make it a lot easier to handle the two payments at once.

If I kept the first house and rented it out how will the bank look at that? Will still having that house's mortgage on my credit make it hard to buy a new house?
Freakshow
01-05-07, 09:44 AM
Construction loans are generally interest only. I'm doing one now that's interst only until construction is completed. Then it can either continue interest only, or be converted to a fully ammortized product. You only have to close once...which is cool.

Qualifying for 2 homes is based on your debt to income ratio. Some people can...some can't.

You can count 75% of the rent towards income. But the bank won't give a damn if you are GOING to rent. Don't see how that would help in this situation.
Freakshow
01-05-07, 09:46 AM
By the way...let's say you find a house you REALLY like. Put in a contract for it...but can't get approved unless your house is sold...

If you can produce a signed lease agreement showing the renter is moving into your EXISTING home the day you close on the new one, you can count 75% of the rent towards income. FYI...lease agreements aren't verified with the renter...
Thelt
01-05-07, 02:18 PM
My credit is fine but I may have a problem with the debt to income thing. I will probably pay down some bills when I get my tax refund and maybe sell my camper when spring comes. I may be able to swing it then.
Redsnapper
01-05-07, 02:58 PM
My credit is fine but I may have a problem with the debt to income thing. I will probably pay down some bills when I get my tax refund and maybe sell my camper when spring comes. I may be able to swing it then.

I smell "stated income".
magnus
01-05-07, 03:18 PM
FWIW, I'm guessing that hiring movers and/or putting some shit in ministorage that you don't absolutely have to have day to day, is cheaper than a second mortgage.
Thelt
01-05-07, 03:20 PM
FWIW, I'm guessing that hiring movers and/or putting some shit in ministorage that you don't absolutely have to have day to day, is cheaper than a second mortgage.

The problem comes in if I decide to build.
Trace
01-05-07, 03:21 PM
Can you do it contingent to selling you house?
Thelt
01-05-07, 04:23 PM
It would not be a problem if I were going to buy another existing house but there is a good chance I will build. It will probably be six months before I do anything. I guess I could just sell my current house and rent an apartment for a few months while my new house is being built.....