Currently I am in the process of house hunting. I already own a home, but its occupied by three people including me. I am trying to move out to live on my own (Finally). I did a recent credit check back in april, it was good, but back then i wasnt interested in owning a new home.
I have a steady job, and make about 2,000 per month. I have a car payment and a small debt to pay to a bank loan (around 1,500 dollars). So my question is, is it possible for a mortgage company to give a loan without having the required 20% to buy a new house? Should i refinance my current property or get an equity loan? The other two current home occupents will remain in that house and carry on the payments there. If anyone has any suggestions or experience, let me know.
By the way this would be my second time being a home owner, the first time i was very young, and might have missed something. My current situation with the home im living in is fine, but i just want to get out, get my own place and go solo.
2010-06-24T11:11:19Z
By the way, those remaining occupents wouldnt be tennants, one of them is on the title and deed to the house, which would probably make him responsible for the mortgage. Still i would be partly responsible.
ron-D2010-06-24T11:38:13Z
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You don't make enough money to cover both mortgages, even if you have tenants, as they are not guaranteed additional income. Honestly, I don't know if you'd get approved even if you didn't own a home already.
You are going to have a hard time getting a mortgage loan with your current debt level and low income. You need to have substantially more down payment, and sufficient assets or income to make both mortgage payments which bear your name, plus the car loan. Before anything, get that $1500 bank loan paid off.
If the others stop paying the current mortgage you will be responsible, and the new mortgage is going to take that into consideration. If that property is insured as your home you will have to change that insurance as the people living there will be considered tenants and the home a rental property.
Refinancing the current property will only hamper your ability to buy another home. Looks like you might need to take on a second job for a while and save up a bundle for a down payment, plus get out of that $1500 loan and the car loan as soon as possible.
If you are intending on leaving this house that you own for good, you should really have the other owner refi in their name only and buy you out.
You would have to show you can carry two mortgages, and on 2k a month, my guess is, that won't happen.
You are also taking a huge risk leaving the place and hoping the other owner doesn't default. As long as you are on that other mortgage, it will hold you back from getting another mortgage and will make you still responsible if the other person cannot pay.
With damaging credit, you will no longer have the potential to qualify for a three% - 5% down charge mortgage. in reality, you would be fortunate to qualify for a private loan that required as low as 20% down, plus you may ought to tutor which you have a multitude of money obtainable (like $5 - $10,000). And, you may get a somewhat severe pastime fee. no longer in ordinary terms that, once you purchase a foreclosure, the supplier (the economic enterprise) does not ought to show any issues of the valuables, whether they comprehend that the region is approximately to crumple, the plumbing and electric powered are shot, and the roof leaks. those subject then grow to be your difficulty and you pay to have them fastened. And, banks do no longer comply with fix issues that an inspection could discover or provide you a wreck on the cost because of the fact of it. the cost is what it relatively is. that's why foreclosure are so less costly to start with.
You'll need to talk to the lender, they are the only ones who can approve this for you. Anyone on yahoo can tell you "sure, go for it, you'll get the mortgage" but that doesn't mean squatte because they aren't the ones handing you the money.