Two Mortgage question(s)

[arthur06]

DW and I have listed our house for sell. We have completely remodeled the whole house, new electrical, new heat and A/C, kitchen remodel with new appliances, bathroom remodel, etc.

Our has has had a lot of serious looks (been on the market 2 weeks). We are selling basically for more space.

Well, guess what???? We found a house tonight that we like. Its asking price is half our asking price. The house needs some work, but it sits on 6 acres.

How hard is it to get a mortgage for a 2nd home, if the first hasn't sold yet?

 

[Nicolepa]

DW and I have listed our house for sell. We have completely remodeled the whole house, new electrical, new heat and A/C, kitchen remodel with new appliances, bathroom remodel, etc.

Our has has had a lot of serious looks (been on the market 2 weeks). We are selling basically for more space.

Well, guess what???? We found a house tonight that we like. Its asking price is half our asking price. The house needs some work, but it sits on 6 acres.

How hard is it to get a mortgage for a 2nd home, if the first hasn't sold yet?

It really depends on a lot of factors. Current morgage amount, new mortgage amount, down payment on new house, equity in old house, credit score, housing market where you live, etc. Best bet is to call a morgage broker and ask them.

 

[cyndik1111]

Depends on your credit, income, how much you owe on the 1st home etc.
Call bank 1st thing in the AM. They can advise you
Good luck!

 

[Cindy B]

I would never ever ever get a second mortgage until the first one is clear.

We are in the process of selling our house for more space. We have done all the same upgrades you have: kitchen remodel, bath remodel, new 200 amp electric, new roof, new central air, new furnace/water heater and new hardwood floors are going in this week.

We are still doing some work.. would you want to do it all again on another house that needs work?

6 acres- do you have a tractor to mow that? A riding mower is not going to work with 6 acres! My parents only had 3 1/2 acres and they needed a tractor. Are you prepared for weather related issues? flooding, lots of snow, or other things? Are you planning for animals-- horses, etc? Be prepared for a lot of work!

Our house isn't up for sale yet (March 1) but I won't even look at other houses until I am SURE this one is sold -- and not even a contigency sale-- actually check in hand SOLD. Yes, we have gone to a settlement and found that our buyer flaked out and never showed up to settlement!

Sure I can peek at realtor.com but I don't seriously look until this is house is sold. I look at realtor.com and zillow for comps than looking at other houses.

 

[arthur06]

6 acres- do you have a tractor to mow that? A riding mower is not going to work with 6 acres! My parents only had 3 1/2 acres and they needed a tractor. Are you prepared for weather related issues? flooding, lots of snow, or other things? Are you planning for animals-- horses, etc? Be prepared for a lot of work!

I have a push mower, but I would upgrade to something more. No pets, so no additional work there.

I could afford both mortgages, I just wonder about the process.

 

[Order66]

We're going through something similar right now. It's not the money that's an issue, but the fact that we own a home that is not currently for sale. The bank wants to view you as an investor and thus subject you to higher interest rates, fees and down payments. We're fighting them on it as we do intend to occupy the new home and repair and eventually put the house in the city up for sale.

regards

 

[rascooby]

We did this about a year ago. We put our house up for sale and started looking for something larger. We found a foreclosure nearby that we liked and it was a great deal. It only needed cosmetic work. We have very good credit. The house that we were selling was pretty cheap and the house that we bought had been dropped $65,000 from what the last owners had paid for it. We were able to qualify for two loans.

It took almost a year to sell our old house though. We paid 2 mortgages for 10 or 11 months, which wasn't that great. I wouldn't have imagined that it would take that long because it was priced well and completely move-in ready.

I'm still glad we did it. We have 3 kids, and had a Great Dane puppy at the time, so showing the house was a nightmare. I felt like I had to have things spotless at all times and it was really, really stressful. We lived in the old house for 3 months while we showed it (we had to work on the new house for a month before we could move in) and I couldn't have done it any longer.

You might be able to qualify.

 

[arthur06]

We did this about a year ago. We put our house up for sale and started looking for something larger. We found a foreclosure nearby that we liked and it was a great deal. It only needed cosmetic work. We have very good credit. The house that we were selling was pretty cheap and the house that we bought had been dropped $65,000 from what the last owners had paid for it. We were able to qualify for two loans.

It took almost a year to sell our old house though. We paid 2 mortgages for 10 or 11 months, which wasn't that great. I wouldn't have imagined that it would take that long because it was priced well and completely move-in ready.

I'm still glad we did it. We have 3 kids, and had a Great Dane puppy at the time, so showing the house was a nightmare. I felt like I had to have things spotless at all times and it was really, really stressful. We lived in the old house for 3 months while we showed it (we had to work on the new house for a month before we could move in) and I couldn't have done it any longer.

You might be able to qualify.

Did the 2nd house require a larger down payment?

 

[rascooby]

Did the 2nd house require a larger down payment?

No. I think we put 5% down and we did a 20 year loan instead of 30.

 

[neatokimmo]

OP - We just got a second mortgage. I have a small house and he has a condo. We bought a much larger house at auction last month. How the bank explained it to us is we qualify for X dollars. If the new house plus the other mortgages were that amount then we were fine. In our case, both original properties are low cost starter places and not much is owed. Then we got a deal on the new house. So we actually came in 100K under their loan number. So it all depends on your ratios, income etc.

That being said, to qualify for our rate (3.75% 15 yr) we have to keep 6 months of principle, interest, insurance and taxes in a separate escrow account for the new house until the other properties sell. We also had to have 20% down on the new place. So it isn't like they just gave us the loan, we just happened to have the requirements they wanted.

I think 6 acres is awesome as long as it is flat enough to ride mow. And fixers are fun. Ours is a fixer too

 

[DawnM]

It will depend on how much of the land you actually have to mow too.

We have a little under 3 acres and have a zero turn radius mower with a wide blade. It is fine.

Dawn

I have a push mower, but I would upgrade to something more. No pets, so no additional work there.

I could afford both mortgages, I just wonder about the process.

 

[arthur06]

OP - We just got a second mortgage. I have a small house and he has a condo. We bought a much larger house at auction last month. How the bank explained it to us is we qualify for X dollars. If the new house plus the other mortgages were that amount then we were fine. In our case, both original properties are low cost starter places and not much is owed. Then we got a deal on the new house. So we actually came in 100K under their loan number. So it all depends on your ratios, income etc.

That being said, to qualify for our rate (3.75% 15 yr) we have to keep 6 months of principle, interest, insurance and taxes in a separate escrow account for the new house until the other properties sell. We also had to have 20% down on the new place. So it isn't like they just gave us the loan, we just happened to have the requirements they wanted.

I think 6 acres is awesome as long as it is flat enough to ride mow. And fixers are fun. Ours is a fixer too

Thanks for all the info.

Our bank is asking for 25% down, plus pay the closing costs on top of that. We are going to look at the house in about 30 minutes, to see if we want to proceed.

As far as the "fixers are fun" line. We have always enjoyed them too, it just gives us a chance to put our touch to it. However, this house is probably beyond a fixer. It's actually closer to a house that needs to be torn down.

 

[malibuconlee]

Not sure how easy it is to get them now, but ask about a bridge loan. I've had several friends do them in the past. I beleive you're only paying interest during the time it's in effect, but better than two full mortgage payments if you can't swing it. Although two cases I knew about where in cases where the couple moved for work reasons.