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Mortgage question

Posted on: 12th Jun, 2008 03:10 am
I own a home in KY and paying on my mortgage (have a 2nd and 1st). Watching my value plummet and can't sell. Dropped home down in price to the point it's 20k less then what I paid for it in 2005 (and I also put 20k into the house!).

Ok, so I haved moved to another state. Renting for now.

I am trying to lease our house out (or sell, which ever comes first). I am toying with idea of trying to get a loan on a new house in FL -- if we can get a wonderful price. (like 03 prices)

Will a lender consider lending a buyer with FICO of 770+, income of about 200k from last year and only debt is cars and deferred student loans of about 20k? For a new mortgage (for purposes of this question --let's say the payment is 2000 Per month for everything)

I am currently paying 2100 per month in old house and if we lease it out it will be for 1700 or so a month. I am paying 1400 per month in rent.

I am worried about the future and naturally would like to get my family in a home while the money is coming in and hope and pray we can either sell the house in KY or keep it a long term rental.

Any thoughts? If something terrible happens (regardless of whether I buy a new home or keep renting).. the first thing we'd have trouble with is the KY house and the payment. I have worked very hard and don't intend to default. If there is a depression and I lose my job and my hubby loses his.. we'll be screwed either way and would have to walk away from KY house eventually.

I certainly don't want anything bad to happen and think that we might be able to make the KY house a decent rental once we pay off the 2nd mortgage (which is doable with some focused effort on paying it down).

But I'd hate to sit on sidelines in FL renting while my dream homes finally get down to a reasonable price for me to buy, b/c of my fear.

Thanks!
Hi Bruce.

Welcome to the forum.

You certainly have very good credit and annual income. So you can surely go for buying a new house. but the fact you have a home loan, a car loan and student loan. So think about whether you can afford all this together?

I think when you sell out or lease out your previous house, you can go for buying a new house as it will reduce the burden of your monthly payments.

BTW if you can afford the present home loan and the new one together then you can go for it now. Check out how much you can afford by the help of this calculator at http://www.mortgagefit.com/calculators/howmuch-afford.html

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 12th Jun, 2008 03:33 am
Read the "Buy and Bail" article in yesterday's Wall Street Journal. I suspect lenders are attune to the risk.
Posted on: 12th Jun, 2008 06:08 am
Do you have any money to put down?

If nothing else you can always purchase it as a second home.
Posted on: 12th Jun, 2008 07:36 am
i would think, based on your original post, that with a credit score such as you have, plus the income you claim to be making; that you'd stand a pretty good chance of getting approved if you choose to make a purchase.

however, keep in mind that values are wildly fluctuating in florida and could lead to an agonizing process to get your loan approved once you enter into a contract. the whole mortgage process has become much more complex than in previous years, so what often looks like an easy deal often becomes a frustration for all involved.

that having been said, i would also suggest that you go for it.
Posted on: 13th Jun, 2008 10:27 am
My husband and his son /daughter in law, purchased a home in NC. The son now lives on the West coast and we live in Texas. The house is rented but the rent doesn't cover the mortgage payment. My husband has to pay the difference. We have now found out my husband is on the home loan but not on the deed to the house. If the house doesn't sell by the end of this year I don't see how we can continue to help pay for this house. How can my husband get his name as co-signer off of the mortgage??
Posted on: 02nd Sep, 2008 12:23 pm
hi e.anthony,

is your son's name there on the loan? if so, then your son needs to refinance the mortgage in order to take off your husband's name as the cosigner.

thanks
Posted on: 04th Sep, 2008 11:27 pm
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