Posted on: 14th Aug, 2009 06:33 am
I want to buy a new house in another state, yet own one in AZ which is upside down. So If I look for another loan, I would want it to look like this , I think? HELP PLEASE
*1500 monthly payment (total of two liens on 80/15 plan) *interest only *includes property taxes escrowed *assumes no PMI due to 5% down
*5 year ARM
Trying to get as mush house(newhouse) as possible under those conditions.
Secondly, with those conditions above, what does my current home(the old one in AZ) need to look like?
-can it show as a second property (rental). If so, what documentation do you need to show that?
- do I HAVE to liquidate it?
- can I put it on the market and get close on the new home before the old home sells?
*1500 monthly payment (total of two liens on 80/15 plan) *interest only *includes property taxes escrowed *assumes no PMI due to 5% down
*5 year ARM
Trying to get as mush house(newhouse) as possible under those conditions.
Secondly, with those conditions above, what does my current home(the old one in AZ) need to look like?
-can it show as a second property (rental). If so, what documentation do you need to show that?
- do I HAVE to liquidate it?
- can I put it on the market and get close on the new home before the old home sells?
Hi,
You can surely look for a new loan to purchase a new house. If you're planning to put down 5% on the loan, you need to go for an FHA loan which will require you to pay MIP. For conventional loans, you need to put down 20% to avoid paying PMI. In case you want to go for an ARM, my suggestion would be to take a fixed rate mortgage to take advantage of the low rates.
Do you plan to keep your current home as well? Will you be able to afford the mortgage payment on both the current and the new loans? Is your income enough to help with qualify in terms of DTI? Have you thought of the deficiency on the current home in case you short sell it?
You can surely look for a new loan to purchase a new house. If you're planning to put down 5% on the loan, you need to go for an FHA loan which will require you to pay MIP. For conventional loans, you need to put down 20% to avoid paying PMI. In case you want to go for an ARM, my suggestion would be to take a fixed rate mortgage to take advantage of the low rates.
Do you plan to keep your current home as well? Will you be able to afford the mortgage payment on both the current and the new loans? Is your income enough to help with qualify in terms of DTI? Have you thought of the deficiency on the current home in case you short sell it?
It may have been a while since you have obtained a new home loan...80/15 or 80/10 or 80/5 for the most part are extinct....I would suggest going FHA...you will have to pay MI.