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Okay... long story short me and my 69 year old father currently live in Tennessee and our house is paid for. Due to medical reasons (and other factors) he (and I) are wanting to move to the Casa Grande area. We have come up with various routes to take to try and complete this goal as painlessly as possible but I thought I would ask a few opinions on here as well.
First of all let me say we are simple people and have no interest in $200k plus properties and suburbia living. We like country living and privacy. We have looked at several places in the $20,000 range that fits our needs (again, we value the land/scenery/privacy much higher than the house itself.) Whatever problems the house has I can fix over time. Anyway, as we never know how long our house here will take to sell we thought of getting a loan and using the house here as collateral and using the money to pay cash for a house there, then when this one sells pay off the loan. But... in case there are no houses in that price range left by the time we get the money, I was wondering if we could take the money from the loan and use it as a down payment for a house there, then when the house here sells just pay off the loan and just have the mortgage in AZ. The question is... is it possible to have two mortgages? We basically have no bills so both payments are not a problem to make. Our debt-to-income ration is well within the acceptable range to qualify for both payment amounts... I just don't know if lenders will give a mortgage with someone who already has one (the loan is basically a mortgage). I hope I explained that right. Thanks.
Your biggest problem is going to be finding a lender who will do a loan for less than $100, 000.
If your credit is good and you have equity in your home in TN, I'd suggest you get a line of credit (also called a HELOC) on your current home, use that to buy you home in AZ (essentially paying cash for that transaction), then make payments on the first mortgage and the HELOC on the TN home until it sells. When it sells, you should be able to pay off both loans.
Of course. One would be a second home. You do pay a little more interest and they are probably going to want more down, but if your "ratios" are OK, there will be no problem. If you need cash for the down payment, you might be able to get an equity line on the current home and draw on that. Just watch those ratios.
My credit score is around 780 and my fathers is around 650. My father is retired from Chrysler and I am a truck driver. We already got approved for the loan but the house is in need of repair and were still waiting to see if they will approve the house. They said they will lend 80% of the appraisal (which was $50,000... lower than its actual value in mho - our yearly taxes show a value of $60,000) but now they're saying the house has to be approved. Doesnt make much sense to me... $50,000 is based on the current condition, so to me it shouldnt matter. As far as equity in the home... its been paid for for over 10 years. I have never heard of a HELOC, how does that work?
I have never heard of a HELOC, how does that work?
HELOC = home equity line of credit. You are essentially borrowing money from the bank, with your home as collateral. You can only borrow money if you have equity in your home, which you do (100%).
But if you could get a home loan instead of a HELOC, get a home loan. The interest rate on a home loan is much lower.
With a reverse mortgage, you could move now, never make a payment again. Lots of people do that, buy a home with a reverse. You have to live in it six months and use it as your main residence. Because many homes are not selling, and people want to move now
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