buying another house?

Question

my question is my arm reset in 2009 i'm getting prepared now if value dosent go up i bought house in 2006 for 225,000 its worth 227,000 now credit is much better making 30,000 more than i was in 2006 year. if i try to buy another house will they add the house note that i have as a debt and say that i cant afford two houses or will they disreguard it since im selling it

Answer 1

they will count the 1st mortgage. They will give you an approval, subject to the sale of the 1st house. At the time you settle the 2nd house, you will need to proved a HUD showing that you have settled the first house.

Another way around this is if you rent your 1st house and show the lender (for the 2nd house) that you have a lease, then they will not count the first mortgage, provided that you have enough rent to over the total mortgage payment.

Another way around this is to do a bridge loan product

And last, based on your income, you may be able to carry both the 1st and 2nd mortgage.

See your lender for complete details on all this.

Answer 2

They would consider all your current debt including your old house. Maybe a swing loan/bridge loan is what you need. I do not know if these types of loan are still available during the present tight credit situation but you could ask your favorite banker.
Good luck.

Answer 3

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Answer 4

They won't disregard it UNTIL you sell it and pay off the mortgage fully. They have no way of knowing if it will actually sell, so they will count this debt against you until it is cleared.