Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm thinking my situation isn't that unusual, but I have had some financial problems and filed bankruptcy last year. I have read that FHA requires 2 years post chapter 7 bankruptcy.
Currently I own two properties. One is a trailer where I live and the other is a rental property. The trailer has no mortgage. The rental house has a $125,000 mortgage on it with that crappy PMI for 11 years through FHA.
My question is with a $50,000 a year salary how or when will I be able to get a new loan or get cash out on my rental property? Credit score is currently 700. Not sure if that matters with recent bankruptcy. My goal is to either build a house on my land where the trailer is or have the old trailer removed and replaced with a new trailer. Not sure which would be easier to get a loan on since construction loans work differently. I am just not aware of how construction loans work exactly. I know some mortgage companies don't like loaning money on manufactured homes, but if I could get something done with a reasonable interest rate I would. I currently live in a 1200sqft trailer and just need more room. It is slightly frustrating owning a $200,000 rental property and living in a $20,000 trailer. Another option is to just sell the rental property but I don't anticipate my renter ever leaving so I have been reluctant to do so. I guess no matter how long I have a renter I am trying to keep the property as long as possible for the tax benefits and eventually use it for retirement money.
You need to sit down with a loan office with your tax returns. FHA doesn't lend to investors and conventional won't lend 2 years after a BK. Your only option is to buy FHA on the new place, but unless you sell something, you won't have funds.
But seriously, you need to meet with someone, sooner than later, get the credit checked and work with real numbers.
If the house tenant is on month to month or has a lease coming up on expiration, give him his walking papers, move into the house and rent out the old trailer.
Stay in your house for two years.
By then you should be able to qualify for a loan.
Boot out the trailer tenant. Sell the trailer for whatever you can get, to somebody who will remove it.
Decide which is more financially feasible, buying a nice doublewide that can be permanently installed on concrete, like a house, or building a house.
Then move back to the new place and rent or sell the other place. If you decide to sell the other place after living there for two years, there's no tax and you can use the money to pay off the loan.
That allows you a place to live with no mortgage payments and all that money goes into your bank account.
If the house tenant is on month to month or has a lease coming up on expiration, give him his walking papers, move into the house and rent out the old trailer.
Stay in your house for two years.
By then you should be able to qualify for a loan.
Boot out the trailer tenant. Sell the trailer for whatever you can get, to somebody who will remove it.
Decide which is more financially feasible, buying a nice doublewide that can be permanently installed on concrete, like a house, or building a house.
Then move back to the new place and rent or sell the other place. If you decide to sell the other place after living there for two years, there's no tax and you can use the money to pay off the loan.
That allows you a place to live with no mortgage payments and all that money goes into your bank account.
You got some great ideas. I have still thought about moving to the more expensive house and renting the trailer like your are saying. The only problem is they are in two different states. $200,000 house is in Dallas, TX and $20,000 trailer is in Oklahoma City, OK. I have a job here and I believe I would have a tough time finding something that would work in Dallas, TX. You never know though? I haven't been very aggressive with the job search there. I find it difficult to manage property from far away, but this has worked out for the last 7 years. I guess that explains my reluctance to sell it or change the situation drastically. I currently have no mortgage payments on the trailer and I have invested a little bit of money in improvements to make myself comfortable. It is just a bit of a trashy home since it is old. Everything works, it is just ugly. I spent around $4,000 on a new a/c and heat system so I could remain there as long as needed and remain comfortable, but the insulation is just crappy on these old houses. It needs all new siding, insulation, and windows to be comfortable which I don't think is worth it. It would be better just to start over and get all new flooring, cabinets, etc. The lowest cost option would be a wider single wide that is 18' wide at around $50,000. In my mind it would be better to get a double wide, but they run around $60,000-$80,000 for what I would like. Maybe more if I went all out? I have no idea what a site built home is and I have no idea how I could get it financed since it would be months before it was built.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
