Is it possible to do a home loan on a primary residence for $100K and then do a investor loan for $100K?
My father-in-law owns his home outright. He wants to refinance his home and use that money to purchase a home for us. (do to loss of jobs several years ago we had to file bankruptcy, we are now in a much better financial position, but obviously can not get a loan) We were told that he qualified for $200K based on 80% appraised value of his primary residence and debt/income ratio. We have found a home for $190K. Now, our mortgage broker has told us that he only qualifies for $145K. We have tried almost every avenue to make this work (not willing to cash in our 401K/IRA). Last hope and my question is this...Is it possible to do a home loan on his primary residence for $100K and then do a investor loan for $100K? The money will go to the second home (his investment home) therefore half cash/half investment. by skysutton from Belfast, Maine. Jun 7th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
I agree with the other lender- you should check your sitaution out with a banker not a broker as you want to make sure you are not qualified for a home loan. It seems like you have plenty of avenues and options to make this work without getting into Hard Money loans. If you would like a second opinion free of charge please ocntact me at gianni.cerretani@fcmhomeloans.com
John Schweer (johnschweer)
#24 ranked lender in Kansas - 163 contributions
very doubful as the investor loan will still count against his debt ratio and he will have addional challenges to getting approved for the second loan............ although you had a BK there are ways to get you approved. Contact me to discuss the situation.
Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions
Here would be your problem. You want to cash out the home that he has no mortgage on. The you will take this money and put some down on the new purchase. Your father would need to make enough money to cover both the loans. Just because you filed BK does not bar you from a mortgage. You might want to consider FHA loans with 3.5% down and use a co borrower. I am sure there is a way to pull out just enough money to make it work. You need to find the right loan officer to put it together for you. What state are you in?
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