Question for loan officers?

It depends on if you have a mortgage or no on it. If you have a mortgage it will count as part of your debt to income ratio. Of course you pay income taxes on the income, but that isn't going to help you if you write all of that income off. Unless your income is enough to pay for all 3 houses you won't be owning 3.

This is not a good idea at all. Family, friends and finance do not mix. It is sort of like oil and water. I know and understand that it would be important to you to assist your stepdaughter in this period of her life.

It might be better in this situation to provide her with sufficient cash to obtain a rental unit with paying the first and last as well as the deposit so she is able to find a local rental.

Most relatives start to think they are entitled once they are residing in a relatives house, especially if the house belong to the parents. They would stop the monthly payments and make many excuses as to why they are not able to pay the required rent while shopping at Macys and buying expensive cars.

In answer to your question, you may purchase a house for any reason you would want. Keep in mind that you currently own a home. Most individuals that own a home have a mortgage against their home.

When applying for a mortgage loan to pay for the house you would want to rent to your stepdaughter, you would have to decide if this is a second home, investment property or you are moving from your current home thus your current home would become your second home or investment property.

Based on the block you check would be a factor in determining your interest rate.

The other thing involved in the purchase of this house would be your debt ratio. Your debt ratio is determined by the debts listed on your credit report you are required to pay each month, to include your current monthly mortgage payment.Your underwriter would include the new monthly mortgage payment as a debt. The other part of the formula is the amount you earn each month to pay these monthly debts. Based on these two items debt and earnings your underwriter would determine your debt ratio.

Your debt ratio should be below 39%. This debt ratio would determine the amount of money a mortgage lender would lend you to purchase this new house.

If you select the block on the mortgage loan application that this would become your primary house, would be the lowest interest rate of this being your second home or investment property. Your credit score would also play a role in determining your interest rate.

If you select this option you would be required to physically stay in the house for a minimum of 2years.

Selecting the other 2 as a second home, or investment property would increase the interest rate you would be required to pay. If the house you decide to purchase is not a certain distance from your current house would not be considered a second home, but an investment property which would be the highest interest of all three.

Of course this will affect your purchase of a third house. The underwriter would be required to determine your debt based on you paying two mortgages as well as your other monthly debts and the amount you earn each month to pay these debts.

Most wage earners and many self employed individuals would not be able to qualify for a second home, and you would want to qualify for 3 houses and pay the monthly mortgages.

Perhaps you would find an internet mortgage calculator to see if you are in the ball park of what your debt ratio would be.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

the loan you qualify for is 30 of your income...I suppose the question is do I qualify...if the payment and taxes are a thousand bucks do you inten to profit by having you daughter buy the house for you or does she get to live for free....what am I missing...put he up in your first house...problem solved....my safe investments are running about 15% per year....I consult for a fee...

YES, YES YES.