Buying a home out of state (home loan, interest rate, approval, credit score)

[zeldaII]

Hi all!

My partner and I want to buy a home in another state. We don't have jobs there yet but want to buy now and then transition out there. We are currently renting and have excellent credit but little down. We can easily do the 3-5% down though. We have bought and sold two houses previously. I can't use my VA because we would have to move there within 60 days and I couldn't verify income since I don't have a job there yet. The house would be our primary residence eventually. Should we claim it as such or call it vacation or second home? Thanks,

[NY62]

You can go primary with a no verifacation loan or second full doc ,you have to sit with someone and go over both to see what one works the best for you.

[UseJeff]

I think most lenders will let you do it as a primary assuming a few things. Are you transferring there are starting a new job? If you're starting a new job have you already been placed? In either of those situations a letter from the current or future employer would probably help. You'll want to call a few different lenders and chat with them about it. I'm assuming you're not retired, otherwise I'd guess you could move sooner if needed.

Keep in mind a loan officer has the goal in mind of closing your loan. If it's a brokerage be sure to tell them the whole story. A bank on the other hand could be trapped by forwarding any information you give them to the underwriter, so be a touch more tight lipped with them.

I'd start with a brokerage, so they can help advise you and offer you some options. They key to starting at a brokerage is that the loan officer has more leeway than an LO for a bank. From there, you can do some shopping at a bank or another lender if you choose.

[zeldaII]

I'm not transferring jobs. I will looking for employment once there. It never occurred to me that this might be a problem. I just figured the loan approval could be based on our current employment and income. If we buy a home as a vacation or second are the interest rates higher? Is a higher down payment required?

[NY62]

Originally Posted by zeldaII

I'm not transferring jobs. I will looking for employment once there. It never occurred to me that this might be a problem. I just figured the loan approval could be based on our current employment and income. If we buy a home as a vacation or second are the interest rates higher? Is a higher down payment required?

It depends on your credit. Like I first stated I knew you did not have jobs. Go second home much easier if everything is in line the interest rate should not be that much different, If your credit is real good . You could also go the other way I mentioned. It can get done.

[zeldaII]

ok, I will look into it. Thanks for the advice.

[kdawg]

This may be a little late to actually get a reply........

zelda, I would LOVE to know how this all turned out for you. I happen to be in a very similar situation and was thinking of also going the second home route. If you see this message, PLEASE let me know how you ended up making it work for you and what lender you used.

Thanks!

[kdawg]

To add to my previous post, I would appreciate any input from others about what to do in this situation. I am also a current renter who is planning on moving out of state in ~8 months. We want to get approved for a home loan based on our current income because I will be going to school and we may or may not be working jobs in our new location.

I have heard that it is ok to purchase a "second home" even though I am renting and have never previously owned a home. Is this true? If so, what kind of conditions should I expect, such as down payment, interest rate, etc.? Is stated income a better option?

Finally, are there legal or tax issues with this idea? In other words, is there a problem with strictly buying a second home, without divulging the intent to move into the 2nd home in 8 months, or letting them know any other information? If this all works, would I need to officially claim it as my primary residence once I moved in?

ANY information would be greatly appreciated!!

[kdawg]

Originally Posted by kdawg

To add to my previous post, I would appreciate any input from others about what to do in this situation. I am also a current renter who is planning on moving out of state in ~8 months. We want to get approved for a home loan based on our current income because I will be going to school and we may or may not be working jobs in our new location.

I have heard that it is ok to purchase a "second home" even though I am renting and have never previously owned a home. Is this true? If so, what kind of conditions should I expect, such as down payment, interest rate, etc.? Is stated income a better option?

Finally, are there legal or tax issues with this idea? In other words, is there a problem with strictly buying a second home, without divulging the intent to move into the 2nd home in 8 months, or letting them know any other information? If this all works, would I need to officially claim it as my primary residence once I moved in?

ANY information would be greatly appreciated!!

bump.

Can anyone please give some advice about my situation? Thanks in advance!

[renriq02]

You're asking for a home loan and will not have any income?

Whether it's a primary, secondary, or investment.....I think 99.9% of the mortgage lenders require a source of income!


If you plan to buy the home now...you will need to qualify with your rent...and the new mortgage amount. You may need to put at least 5-10% down...and have a high credit score.