Can I Get a Mortgage for a 2nd Home?
OK. so we have a doublewide and an acre of land we are wanting to leave. We have been there 4 years and just deciding we want a bigger piece of land in a more country setting.
We have found another home that we would like to buy that has 14 acres and a brick house. We are looking to sell our 1st home (doublewide and land- we are currently living in). We have 2 people who would like to Assume our mortgate (waiting on packet from BOA)...not sure if their credit will qualify though. We also have 3 families who are willing to put $5k down and do lease option for 5 years with $1000 monthly payments which is the mortgage payments.
Our credit scores are between 650-725 (hubby has high scores and for some reason one of my scores are 575).
Monthly income is $5400 - $6420 a month if we include what the rent will be on the first home.
All vehicles are brand new but PAID off. Only bills are utilities $200 a month for two different line of credits loans we have.
So all together with bills and utilites, we run about $800 a month with no first mortgage, $1735 counting the first mortgage if we were to just rent it.
First home is an FHA loan. Originated in 2007 for $120K but owe $110k.
New home is going to be around $140-150K agricultural so no taxes and payments estimated $1300 a month with insurance.
- $935 first home
- $800 living expenses
- $1300 2nd home
$2365 left over after paying bills and both mortgages every month.
Is it possible we could get a mortgage for our second home without selling our first home? We are waiting for the market to come back up unless someone does an assumption. We really don't have any money to put down but may could come up with $3-5K if absolutely required.
The land is considered farm land and does have 10 acres of mature pines which could always be used for emergency funds if needed.
Any input is greatly appreciated.
***The first home has an FHA loan so the 2nd would not qualify for FHA unless we got the first one assumed. We DO have an assumable loan as I have checked in to it and FHA gave the me the 'go ahead' to find an assumer" however I misplaced the paperwork that BOA told me would be in 5-10 days and it took 4 months and over 50 phone calls. Now I am in the process of trying to get the packet again...
Sophie...what country or world are you?
Apparently you misunderstood, I'm not looking for a 2nd mortgage on my mobile home I'm looking to buy a second home. And, with my last inspection the house still had an expectancy of 35 years. With PROPER maintenance and upkeep, a mobile home will last more than 18 years!
2nd- the people are wanting to sell for the main reason everyone else does...they want to move or no longer need the home, in this case, it was a family inharetince and the elderly already has a home on the lake.
What makes you think that just because someone is selling a home you have to run. We do plan on getting an inspection to prevent any suprises.
We do plan on staying in this house a LONG LONG time. It's a beautiful ranch style home with lots of land which is what we are wanting.
The loan is assumable and I will be released from the liability. I have checked that already.
- loanmasteroneLv 78 years agoFavorite Answer
The figures you provided is called a budget. This might work well for you and keeping you within a guideline of spending and saving. Mortgage underwriters use what is called a ratio to determine if you are qualified to purchase a house.
This ratio is arrived at by taking your combined income and your combined debts on your credit report thus coming up with this ratio. Your current home mortgage would be considered in this ratio.
Any income you produced from your current home through a rent/lease to own or out right rental probably not be considered and would be used as income by a mortgage underwriter.
You might consider a USDA or FHA mortgage loan for the purchase of your new home. Using one of these programs would require less of a down payment. If your credit scores are correct you could qualify for a FHA program with a down payment of 1%.
Contact a local mortgage lender that is authorized to do FHA and USDA mortgage loans. make an application for a mortgage loan.
Getting someone to assume your mortgage would be in your best interest. This would make someone else responsible for your this mortgage. If this happen prior to the closing of your new real estate transaction this mortgage loan would not count as a debt, thus reducing your ratios.
A rent/lease to own by someone might be a good idea, however, you might consider being the bank and carrying the mortgage loan yourself. Draw up a sales contract between you and your buyer.Take this sales contract to a title company as well as an escrow closing agent. Make sure the sales contract has in it's body that "This sale is subject to the existing mortgage." If there are corrections needed with the sales contract the title and escrow company would assist in these corrections.
These two companies would make sure your sale is done according to federal, state and local laws. The escrow would draw up a deed of trust and note in your behalf with the monthly mortgage payments due you by the buyer based on the interest rate and number of years in your sale contract.
I hope this has been of some benefit to you, good luck.
- sophiebLv 78 years ago
I think you need an attorney.
I have a lot of thoughts on this but they're underlying and not what you want to hear right now. I'd be wondering why the brick house with 14 acres is being sold (is it because of drought?) and if you plan to farm it since it's agricultural, and is there lack of water or too much water. Find out what the problem there is that they're selling. You term your doublewide a home. While it is probably registered as a home for tax purposes it's still like a car and will last around 18 years if you bought it new. If your FHA loan is for longer than 15 years you were going to be in trouble because the place would be falling apart, so I don't know if it's possible to get a second mortgage on it, sensibly.
There are some states wherein you need to get permission to cut down trees.
2012 is an election year and those election years are always tough on people, plus the overall economy has been poor so I'd be hesitant to tell you to buy, but working with the mobile home by giving out an assumed mortgage just isn't the way to go because you'd still be responsible for that home if the new people default (which they very well might).
when you move into a home you need to plan to be in there over 10 years. I'd say your better bet would be for you to sell the mobile home to some senior citizen in your family and give them a good deal (low or no rent). But, talk with an attorney and a cpa to make sure you're doing it properly.
- godgedLv 78 years ago
If you carry a new owner, that debt will still be reflected on your debt to income ratio. I doubt you can qualify for a loan for the new home without selling the first. Banks are very stingy about allowing an assumption of your loan, these candidates would have to qualify as any one else would for assuming your loan, with good credit and such.Source(s): Oregon Realtor
- o'neilLv 43 years ago
one million. you won't be ready to flow your first abode loan to a diverse abode. 2. you are able to desire to prepare for brand spanking new loan for yet another abode . 3. you will flow the identify of the abode you're promoting to the recent proprietor on the final.
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- 3 years ago
Never thought too much about that