Mortgage question on purchasing a second home?

The home you purchased 2 yrs ago is your primary residence. You would be better off renting your current home, if you have 25% equity in that property & have a lease agreement & collect rent then you can count the rental ncome in your debt to income ratios, which would offset the full monthly payment. You would still have to count all debt including the new payment. So it just depends how much other debts you have to see if you would qualify. Do you know what type of mortgage you currently have on your primary. If it is an FHA loan that you have, you will not be able to do another FHA loan for the new property. So there are many questions & not just a blanket answer.

Hi Daisy.If you keep your name on the loan (cosigning applies), the payment will be calculated in your ratios. Will your Grandmother qualify on her own to get the loan out of your name long enough to buy another home? Call me if you want to discuss this further. Patrick McCarthy, Stonegate Mortgage Corp, 614-310-7520

Co-signing always impacts your ability to qualify for future indebtedness. Depending the distance of the new home being purchased from your existing home, a case could be made for the purchase of a second home in which you could buy with 5% down. In either case, you would be best served to speak with a qualified mortgage banker and not a bank employee to guide you through the home buying process. Good luck.

Daisy, first the proper term is joint loan applicant. The way you want to do it will still put you on the loan and the PITI will be counted against your ratios for the new homes' PITI. Also many lender will most likely flag the recent transaction and pull teeth to verify the purchase of the new home. FHA is once every three years (one property) every three years. 5% (min) will be needed to purchase second home. Even though second home will be your primary you have a primary which (obviously) you do not have 1 years worth of rental income to provide. In this case you may be best doing a 1 year lease to purchase (many sellers are considering this option) talk to an agent, rent your current home for a year, thus you will have 1 years worth of verifiable rental income, to be able to purchase the second home. Best of luck. Also be careful with selling to family for then the sale will not be an arms length transaction... Which means no relation to buyers... =)