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I want to buy a second home in NY area (would love to hear from those who can lend in NY) and here is my situation- hopefully it's all you need to offer opinions.
1. Own a home in Fl. with approx. 180k left on mort. Worth 280 but dont want to get second mort. since family member co owns. Total payments with prin, int, insur, taxes is $1400 monthy that I pay by myself- co owner doesn't live here. Plus I have $225 community dues monthly, no other regular monthly payments- no car loan or credit card balance- use debit card.
2. Net worth approx. 2 Mil but 500k is unusual stuff...private RE partnerships, 1/3 of an insurance trust, etc- that I doubt banks would consider since no recent appraisals. Plus IRA of 70k. I don't want to pay all cash for second home because mostly in family partnership with siblings, but that I can get document full access and continuing payments from it
3. No earned income- retired. Excellent credit- 775 on Myfico which I think is the "real" Fico score.
4. I know there are "Asset Depletion" programs from having posted previously- I found a bank document online explaining how to underwrite these I estimate they would credit me about 1.1 mil. for my assets after applying 70% factor to stocks, and -if I recall- 70% to my IRA since Im under 59- Im 56. I figure at 1.1 Mil at 4% on 30 years I would get credit for approx. 6k for month as income under the banks standards(?)
5. I have read that FHA has looser standards for front end and back end ratios, including up to 50% or more on back end ratio and perhaps 45% on front end. I believe the mortgage payments on my primary residence would be consider part of the back end ratio when calculating for new mortgage on 2nd home.
So by my calculations based on around $70k annual "asset depletion" income, approx. 1650 monthly expenses- which is all due to existing home costs- and before new second home mortgage, and these higher ratios- 45% front end and 55% back end (if really available????) and a down payment of 50k plus on 250 second home, can I hopefully get close to the requred 200k mortgage?? Note that I would be happy with a 5/1 arm with lower interest if that improves my ratios, or do they assume 30yr at 4-plus %?
I realize I am asking for something unusual between the higher ratios and the asset-depletion, but hoping someone on here can give some advice or is experienced enough to know how this would go. Thanks!
The problem with asset depletion is you are not currently depleting your assets and can't for a few more years (if I understood you correctly, it's in an IRA and you are younger than 59).
I don't know how to make this work for you. Sorry, hopefully someone will be along with a good suggestion for you.
Small house in Hampton Bays or Riverhead/Flanders area on LI, or less likely Dutchess county.
Ah, ok. Don't know if $250K will get you far in Duchess but i have a really good friend who lives in Riverhead and that should be doable.
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Thanks but...
