Mortgage Blog

You got questions, I have answers(Sep 7, 2010)
September 7th, 2010 11:04 AM

Q: We have Annual income of 180k.  And want to purchase
a property of 700k with 20% down. We have another underwater
house with mortgage payment of $2755. Can I qualify to
purchase this property? I have another auto loan of
monthly payment $700.

A: The answer for this question is yes or/and no.
There are a lot of difficulties to get the loans.
First, we can not use your rental income since its LTV
is over 70%(most lenders allow you to use if you have
30% or equity in the house); Second, with the mortgage payment
for both houses and your high auto payment, your Debt to Income
Ratio is way over 45%(required by Fannie Mae).
So, you can not qualify for a primary loan.

But if you can have 25% down payment, you can purchase as a
rental. And since we can use the market rental as your income
for rental purchase, you can at least have this transaction closed.
Then a few months after the close, after you move in this property,
you can refi back as primary, with rental income from the current house.

Posted in:General
Posted by Eric Fang on September 7th, 2010 11:04 AMPost a Comment

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