Posted on: 26th Sep, 2011 11:17 am
I have to live within our City limits for my job. We would like to send our sons to the schools in a neighboring suburb which is literally one block from our current home. There is a modest home for sale right down the street in the suburb.
What are the chances of being financed for two primary residences? I imagine it would depend mostly on income/debt ratio, which should be good. We also have outstanding credit. Just wondering if lenders would totally frown on this.
We are looking at it as not only being able to send our sons to much better schools, but also as a long term savings investment.
What are the chances of being financed for two primary residences? I imagine it would depend mostly on income/debt ratio, which should be good. We also have outstanding credit. Just wondering if lenders would totally frown on this.
We are looking at it as not only being able to send our sons to much better schools, but also as a long term savings investment.
Hi Tom!
Welcome to forums!
You can't have two primary residences. One of the homes will be considered as your primary residence and the other will be considered as your second home. Unless you have a very stable income, required debt to income ratio and excellent credit scores, it will be quite difficult for you to qualify for mortgages on two properties.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can't have two primary residences. One of the homes will be considered as your primary residence and the other will be considered as your second home. Unless you have a very stable income, required debt to income ratio and excellent credit scores, it will be quite difficult for you to qualify for mortgages on two properties.
Feel free to ask if you've further queries.
Sussane
Hi tom!
There are also limits on the loan amount the FHA will insure for a single borrower.The two most important were "Relative Economic Stability," which constituted 40% of appraisal value, and "Protection from adverse influences," which made up another 20%.
:idea:
There are also limits on the loan amount the FHA will insure for a single borrower.The two most important were "Relative Economic Stability," which constituted 40% of appraisal value, and "Protection from adverse influences," which made up another 20%.
:idea:
The second home will not be treated as a "second home" for mortgage purposes. A second home is the same as a vacation home, rates are the same as a primary home, but, you can not have a second/vacation home so near the primary home.
So, it can be purchased by you, if you qualify, as an investor property. Nothing wrong with that. Down payments higher, 20%, and rates a little higher thnan rates for a primary home, but, rates are so low, you would hardly notice the difference. The tough part is you need at least 20% down.
So, it can be purchased by you, if you qualify, as an investor property. Nothing wrong with that. Down payments higher, 20%, and rates a little higher thnan rates for a primary home, but, rates are so low, you would hardly notice the difference. The tough part is you need at least 20% down.
