Help on buying a second house
We have been looking for a larger house for some time. Given that it is close to tax time and the $6,500 tax incentive has been extended, we are considering a purchase sooner than planned. The question is what to do with our current house? We owe $64,000 (9 years left) on a house with an appraised value of $120,000. We are looking at another property that is worth considerably more that the $190,000 that they are asking. Should we refinance our current house to lower the payment and rent it out (in case it doesn't sell in a timely manner)? Will we be able to buy and close on the second house prior to selling the first home? We have very good credit and an income of $100,000 plus. Any advice out there? by Matt Renaud from Centralia, Illinois. Jan 17th 2010
Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions
You can actually do both as long as your income can support both payments. Purchase the second home and forget about the re-finance of your current home. You probably will not have enough time to make up the settlement costs. Rent out your current home as soon as feasible with a disclosure to the tentative tenants that you are selling the property and a new owner will be the new landlord. You may even be able to sell the property to the tenants. The current loan guidelines for Fannie Mae will not allow you to use the income from the rental but based on your information you may not need it. This whole scenario is tentative and depends on your qualifications so it is important that you speak to a mortgage professional who can go over your information in detail and give you appropriate advice.
Parham Rezaeipour (Parham Rezaeipour)
#3 ranked lender in Indiana - 8 contributions
This is a great question. in order to give you the best answer there are a few more details that needs to be considered. if you are interested to duscuss this, feel free to contact me anytime at 219-865-4000 and ask for KevinThanks.
Ask our community a question.
Get an answer
Related Questions
