Posted on: 26th Jun, 2011 06:56 pm
i need some direction on what to do. we have an fha financed mortgage on our first home, it is 1000 square feet and we just had our second child. i have heard that we can't get a second fha loan unless we have 25% equity in this loan (we don't). we also do not have 10% to put down for a conventional loan. we have tried to sell our home in the past and it sat for almost a year. is it possible to refinance our current loan into a conventional loan and then use fha to mortgage a second home? our credit is 670 (him) 690 (me) average. we have about 40k in retirement and about 5k cash on hand. we owe 107k on our fha and it is worth about 110-115k. our income is about 125k a year but a lot of that goes to private schools and other bills (not debt). our comfort zone for the new house payment wise would be about 150k-200k. thanks for any help you can provide!
hi soulfood,
as far as i know, you won't be able to qualify for a second mortgage unless you've t least 20% equity in your property. you should appraise your property and check out if you've 2% equity in it. if not, then you won't be able to get a second mortgage.
thanks,
jerry
as far as i know, you won't be able to qualify for a second mortgage unless you've t least 20% equity in your property. you should appraise your property and check out if you've 2% equity in it. if not, then you won't be able to get a second mortgage.
thanks,
jerry
It seems to me you're not looking for a "second mortgage" but, instead, an additional mortgage on a different piece of property.
Refinancing, as you noted, to a conventional loan, would be pretty difficult if your numbers are right. If current value is $110K and you owe $107K, I am unaware of any conventional lenders who'd grant loans with that high a loan to value ratio. It's a great idea if you can do it, frankly, but it's highly doubtful at this stage.
Unless you can sell the home in preparation for moving out, you may well be stuck with having this new child forgo his or her own bedroom for a while.
Refinancing, as you noted, to a conventional loan, would be pretty difficult if your numbers are right. If current value is $110K and you owe $107K, I am unaware of any conventional lenders who'd grant loans with that high a loan to value ratio. It's a great idea if you can do it, frankly, but it's highly doubtful at this stage.
Unless you can sell the home in preparation for moving out, you may well be stuck with having this new child forgo his or her own bedroom for a while.
