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I plan on renting my current home that Im upside down on, how much would a lender expect down for a second home? Im sure people like myself are a big red flag to lenders but I do plan on keeping the old home until it regains value and not just walking away.
Do you have a really solid basis to believe that you CAN get more in rent than the bills total?
If so... then move out and rent it.
Get a much less expensive apartment for a couple of years.
Save up a nice big chunk of down payment cash.
THEN... go to the bank with CASH and two years of rent receipts and the tax forms.
They should be willing to deal with you to get a second home.
I plan on having 50k minimum to put down, hopefully closer to 80 or 90k, plus my in laws who have perfect credit are willing to cosign. Ive also modified my loan on my current house to get the payments down a bit lower than what rents are going for in my neighborhood.
Wait - if you are going to rent out the home you are in, and buy another to live in, it might not be a 2nd home. If it's bigger, "better," or closer to work, it could be deemed a Primary residence and allow you to go with an FHA/VA/USDA loan.
Anyway, 2nd home guidelines are pretty much identical to Primary residences as far as a Conventional loan would go. Rates, too. You can do as little as 5% down, although you would have to escrow taxes and insurance if you did that.
but I do plan on keeping the old home until it regains value and not just walking away.
Plans fall apart.
Quote:
I plan on having 50k minimum to put down, hopefully closer to 80 or 90k, plus my in laws who have perfect credit are willing to cosign.
You really want to drag your in-laws into this mess you have created for yourself and destroy their finances too? You got yourself into this mess, you get yourself out. Don't accept their offer to cosign.
You really want to drag your in-laws into this mess you have created for yourself and destroy their finances too? You got yourself into this mess, you get yourself out. Don't accept their offer to cosign.
Blunt, but good advice. Sorry I can't rep you again.
You really want to drag your in-laws into this mess you have created for yourself and destroy their finances too? You got yourself into this mess, you get yourself out. Don't accept their offer to cosign.
Is there something about my situation that offends you?
So sorry I didn't have the power of premonition back in 07 when I was priced out of anything closer to our jobs and good schools for the child that wasn't even conceived yet. I love how all you people who bought in the 80s and 90s love to scold us like we should have known better.
I love how all you people who bought in the 80s and 90s love to scold us
like we should have known better.
Well, you should have.
But how you got into this leaky boat is immaterial at this point.
The question is what responsible choices you have to do something about it.
And quite frankly the choices are slim.
Start with finding a way for the property to pay it's own way.
That's either as your primary residence (and you wait until equity catches up)...
or that's as a rental property earns enough to cover the nut.
In law cash and more debt are really (really!) not the way to go.
Is there something about my situation that offends you?
So sorry I didn't have the power of premonition back in 07 when I was priced out of anything closer to our jobs and good schools for the child that wasn't even conceived yet. I love how all you people who bought in the 80s and 90s love to scold us like we should have known better.
We took a $140K loss on a house we bought in 2007 when we had to move in 2012. Couldn't do a short sale because the half million dollar house was paid off. Silly us.
But it would never have been an option to drag relatives into our financial issues, putting their well being at risk. That's not a choice that would have allowed us to sleep at night.
Well, you should have.
But how you got into this leaky boat is immaterial at this point.
The question is what responsible choices you have to do something about it.
And quite frankly the choices are slim.
Start with finding a way for the property to pay it's own way.
That's either as your primary residence (and you wait until equity catches up)...
or that's as a rental property earns enough to cover the nut.
In law cash and more debt are really (really!) not the way to go.
Rents in my neighborhood for a house like mine are going for about $1000/month and my payment is $900, that should cover it no? I also didn't say anything about in law cash, this will be MY cash. What is wrong in yalls mind with what Im doing? People buy second homes and rent them out all the time, that's all Im trying to do here. My original question was about getting a loan for this new house while being underwater on my current home, and what the lender will be expecting from us as far as down payments go.
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