Posted on: 20th Jul, 2009 08:41 am
My husband and I are trying to sell our first home and purchase our second home.
1. Our first home was FHA 97-100% financed and we need to know what it'll take to purchase our second home.
2. If we sell our home for below it's value what this will mean for us to qualify for our second home.
1. Our first home was FHA 97-100% financed and we need to know what it'll take to purchase our second home.
2. If we sell our home for below it's value what this will mean for us to qualify for our second home.
difficult to give you straight answers, but here goes:
you can still qualify for fha financing on the purchase of a new property, which will require that you have 3.5% of the purchase price for your down payment. gift money is allowable.
as for a short sale, you'll obviously not reap any funds from the sale that you could use for down payment, but if you have your own funds on hand, that will help. my understanding is that short sales have an adverse effect on your credit standing, but that will, in part, depend on your payment record on the mortgage so far, as well.
you can still qualify for fha financing on the purchase of a new property, which will require that you have 3.5% of the purchase price for your down payment. gift money is allowable.
as for a short sale, you'll obviously not reap any funds from the sale that you could use for down payment, but if you have your own funds on hand, that will help. my understanding is that short sales have an adverse effect on your credit standing, but that will, in part, depend on your payment record on the mortgage so far, as well.
Yes, we are currently in the process of saving for our downpayment on our second home. However, we were not interested in a short-sale, but if we get a buyer, we know that they will try to give us a lot less than what we owe. My questions is, if we do decide to sell at a lesser price, would the lender be able to add that negative balance from the sale of our first home to the mortgage on our second home to avoid the negative effect on our credit?
"no" to that question.
if you are selling your house at a price lower than it's value , lender will ask you to for payment of balance amount.
also note that short sale will affect your credit score approx by 100 pts. it will badly affect your new loan process. new lender may charge higher interest rate.
also note that short sale will affect your credit score approx by 100 pts. it will badly affect your new loan process. new lender may charge higher interest rate.
and not in every case will a lender seek a deficiency from you.
check with lender
1.Since we would really like to sell our current home and buy another home, what do you see as our options.
2.If we do decide to take a loss on our home, will this balance normaly be due upon closing?
2.If we do decide to take a loss on our home, will this balance normaly be due upon closing?
You will have to check with your lender to see if they will make you responsible for the balance.
