Posted on: 13th Jul, 2010 05:10 pm
my husband and i are living in a double wide on 20 acres of property.
there is also a 2nd home (double wide) on the property that my mom lives in. appraised 10 yrs ago without 2nd home in appraisal at 83k.
we owe $67k on our existing mortage, have a balloon coming due and wish to upgrade to a new modular home. we are also willing to put the 2nd home and it's property up on the mortgage, which we intentionally left off previously. the amount needed to do this is approx. $230k (we also want 20k to pay off two high interest loans).
our new payments will be around $1500 per month (currently paying 7.4% interest). combined we have a $4500/mn gross income. the two high % loans and current mortgage of $650/mn are the only payments other than utilities we owe.
the bank said they don't like our debt to income ratio. i'm not understanding that as we are right there hoovering around the 30% mark i'm to understand is desirable. our credit scores are not good but we do have 15 yrs of paying mortgage with this bank - never late, 99% of the time early and paying extra. i'm to hear word on prelim thursday after a committee meeting she says is standard with this size loan. (loan officer is the vp at the bank- local not national).
i really need this home. my doctor has even stated that if he could write a prescription for a new house, he would. i have severe ptsd with the trauma occurring on a repeated basis in this existing home. i do have a diagnosis and take medication for this. i waited until a new job came along and upped my income before attempting to get a new home.
how can i increase my chances?
my son has a credit score of 760 but lacks an income capable of paying that type of mortgage payment. i had considered doing a quit deed transfer to him and allowing him to get the loan but don't know that would work with the lower income ($2400/mn). or could we put him as a co-signor or???
open to any and all suggestions. bit of panic here as the balloon is due in aug. and we've paid a $500 deposit on the modular home we picked out.
there is also a 2nd home (double wide) on the property that my mom lives in. appraised 10 yrs ago without 2nd home in appraisal at 83k.
we owe $67k on our existing mortage, have a balloon coming due and wish to upgrade to a new modular home. we are also willing to put the 2nd home and it's property up on the mortgage, which we intentionally left off previously. the amount needed to do this is approx. $230k (we also want 20k to pay off two high interest loans).
our new payments will be around $1500 per month (currently paying 7.4% interest). combined we have a $4500/mn gross income. the two high % loans and current mortgage of $650/mn are the only payments other than utilities we owe.
the bank said they don't like our debt to income ratio. i'm not understanding that as we are right there hoovering around the 30% mark i'm to understand is desirable. our credit scores are not good but we do have 15 yrs of paying mortgage with this bank - never late, 99% of the time early and paying extra. i'm to hear word on prelim thursday after a committee meeting she says is standard with this size loan. (loan officer is the vp at the bank- local not national).
i really need this home. my doctor has even stated that if he could write a prescription for a new house, he would. i have severe ptsd with the trauma occurring on a repeated basis in this existing home. i do have a diagnosis and take medication for this. i waited until a new job came along and upped my income before attempting to get a new home.
how can i increase my chances?
my son has a credit score of 760 but lacks an income capable of paying that type of mortgage payment. i had considered doing a quit deed transfer to him and allowing him to get the loan but don't know that would work with the lower income ($2400/mn). or could we put him as a co-signor or???
open to any and all suggestions. bit of panic here as the balloon is due in aug. and we've paid a $500 deposit on the modular home we picked out.
Hi ford,
If your second home is free and clear, then you would be able to get a mortgage. However, you already have a mortgage on your primary property. In that case, it would be difficult for you to qualify for a new loan on a new property. Moreover, you don't have the required debt to income ratio. In such a situation, getting a loan will not be possible for you.
Your son has a good credit score but he has a low income. He can apply for a loan and check out if the lender approves him for it.
Thanks
If your second home is free and clear, then you would be able to get a mortgage. However, you already have a mortgage on your primary property. In that case, it would be difficult for you to qualify for a new loan on a new property. Moreover, you don't have the required debt to income ratio. In such a situation, getting a loan will not be possible for you.
Your son has a good credit score but he has a low income. He can apply for a loan and check out if the lender approves him for it.
Thanks
Jameshogg,
I may not have been clear earlier, for that I apologize. We are looking to trade in our double-wide on a new modular home--same property, which is our primary/only residence.
I may not have been clear earlier, for that I apologize. We are looking to trade in our double-wide on a new modular home--same property, which is our primary/only residence.
You can sell off your existing home and pay off the mortgage dues in full. Then you would be able to buy a new property. If you can't qualify for the mortgage alone, then you can use your son as a cosigner.
Guest,
While certainly a wonderful idea, I doubt very much in this housing market it would work. Some mobile homes even render a negative trade in value due to the current market, the fact they are near impossible to finance once used and the high cost of transporting and setting them up. While I am right now getting my home ready for the trade-in appraiser, I am not counting on it's value being much despite being a good sized, attractive home. House insurance and banks hate double wides, one reason we are going modular this time around despite the fact they are made nearly identical in the factories.
I paid over $60K just for the home (not to move/set up, etc) 15 yrs ago. I'll feel lucky to score 10K... heck, not to get stuck with a negative amount and then having to search for someone else capable of moving the home to take it because set ups alone cost around $25K and moving will be extra. Certainly NO WAY it would be enough to pay off a $67K mortgage.
The bank I've dealt with for 15 yrs is meeting this am to decide if we are preapproved. Praying hard and thinking positive. All I can do at this point I guess.
While certainly a wonderful idea, I doubt very much in this housing market it would work. Some mobile homes even render a negative trade in value due to the current market, the fact they are near impossible to finance once used and the high cost of transporting and setting them up. While I am right now getting my home ready for the trade-in appraiser, I am not counting on it's value being much despite being a good sized, attractive home. House insurance and banks hate double wides, one reason we are going modular this time around despite the fact they are made nearly identical in the factories.
I paid over $60K just for the home (not to move/set up, etc) 15 yrs ago. I'll feel lucky to score 10K... heck, not to get stuck with a negative amount and then having to search for someone else capable of moving the home to take it because set ups alone cost around $25K and moving will be extra. Certainly NO WAY it would be enough to pay off a $67K mortgage.
The bank I've dealt with for 15 yrs is meeting this am to decide if we are preapproved. Praying hard and thinking positive. All I can do at this point I guess.
Try the USDA Rural Housing loan.
Thanks, fprice. I will look that up and see if it is something we can take advantage of.