Posted on: 05th Apr, 2010 07:48 am
Hello, Here is my situation. I live in Tennessee if that matters. I have some land in another part of my county with a balance of around $18,000.00 left on it. I have had my home for sale for a year & it's ready to come out of the realtors hands. Basically, it won't sell due to the bad neighborshood. I have had NUMEROUS people ask me if I would rent my home or consider an owner finance deal. Here's what I want to do...I'd like to either build a new home or buy a modular home & put on my land in the other part of the county. My question is, how will my current home (that I will be either be renting or do an owner finance) affect my situation on the building a new home or getting a modular home. Our finances & credit is fine & the current mortgage is $96,000.00 & is an FHS loan. We've lived here for 5 years. From what I've read online, it looks like I can either rent or do an owner finace my current home (FHA rules) since I've been there over 2 years & have never missed a payment. The only thing that I'm confused about is, how will the existing home effect me getting a construction loan for a new home or buying a modular home? I've had my land over a year so it is considered seasoned. Will this mean I will have to come up with a HUGE down payment due to me having an existing mortgage or will the rental property or owner financed property be looked at as income? PLEASE HELP!
Hi gjcluttrell!
Welcome to forums!
As far as I know, it will be difficult for you to qualify for a loan when you already have a mortgage on one of your properties. Thus, there are high chances that you won't get a mortgage for your new property. You will have to sell off the present property first and pay off the dues and then apply for a new loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, it will be difficult for you to qualify for a loan when you already have a mortgage on one of your properties. Thus, there are high chances that you won't get a mortgage for your new property. You will have to sell off the present property first and pay off the dues and then apply for a new loan.
Feel free to ask if you've further queries.
Sussane
It was me above! I forgot to log in! :)
So even if I have a renter in the home at the time I apply for the mortgage with a contract that don't matter? Also, if I did an owner finance & had everythign written up by a lawyer & had someone in the home with an owner finance deal at the time I applied for the new loan would that not matter either?
You won't be able to get a mortgage for a property which you've already owner financed.