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Can I purchase a second home after recently refinancing my first home?

I recently refinanced our home to take advantage of the lower rates. It is an FHA 30yr loan. AFTER refinancing, my wife and I decided to buy a 2nd home and possibly rent our first home since we would be upside down if we tried to sell it. Our original intent when refinancing is only to get a lower rate. We only decided to rent it out after we had already refinanced? Will I be able to qualify for the 2nd loan as long as I can cover both mortgages financially? by jonath_729_639 from Albuquerque, New Mexico. Feb 15th 2013 Reply


Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Good Morning. There is a possibility of making the purchase, but a few things would be considered such as the property type, distance from your existing home, reason for moving, etc. You would need to support both housing payments and all of your other debt without any rental income being calculated for your former home unless you can prove there is at least 25% of Equity, which would seem to be impossible given the details you provided already. Normally, if you have a condo and purchase a single family, that would make sense to an underwriter. Moving from a 2 bed home to a 3-4 bed home, would also make sense. Going from a single family in similar size, style, location, etc. and making a lateral purchase may raise questions! I'd be happy to offer a no obligation consultation and pre-approval on this file if you are interested. Just send me a direct message through this site. Thank you and have a great day!

Feb 16th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Ok.. so in mortgage terms, your actually wanting to purchase a different primary residence, not a 2nd home.. and you can do this, but be prepared for your scenario to be scrutinized... Loan fraud is very serious, and your scenario will pop red flags to any experienced underwriter... based on your question and some of the terms you used, it appears you have been coached by a mortgage professional.. the guidelines do talk about intent, however its up to an underwriters final decision to allow it or not.. if you wait 12 months, you will have no issues, but if you're trying to do this right after your refinance, it's going to be looked at closely...I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com Cross Collateralized

Feb 16th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Yes there shouldn't be a problem. We also have a program that allows new rent as income as long as you have a lease agreement and deposit from the new renters. Get into touch with me, we should be able to help you. P: 888-320-7888 - www.MortgagesforAmerica.org - Ken Burrows

Feb 15th 2013
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Iris Guzman (iguzman)
#6 ranked lender in New Mexico - 1 contribution

Hi JonathanMy Name is Iris Guzman I am with Castle & Cooke Mortgage. Yes you can buy another home, as long as we can document that you have the income to support both mortgages. What will change is the amont you will need down and your program options. Since you have a FHA loan now you wont be able to use FHA to buy a new home ,however there are a ton of awesome products that we offer that may work well for you. Please call me any time to further discuss your needs and to identify the amount that you can qualify for on a new purchase. Iris M Guzman505-250-2137 or 505-349-8533iguzman@castlecooke.comNMLS 286700

Feb 15th 2013
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Rick Schmille (Schmillenium)
#5 ranked lender in New Mexico - 20 contributions

Yes, if you qualify. Can't do another FHA. If you can find a homepath home you'll only have to put 10% down and you won't have mortgage insurance. Deal local: Rick at 250-7670

Feb 15th 2013
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Rick Schmille (Schmillenium)
#5 ranked lender in New Mexico - 20 contributions

Yes, if you qualify. No FHA this time though. Go to www.homepath.com and find a home you like. 10% down and no MI. Keep it local and call me at 250-7670. Rick SchmilleOpen Mortgage, LLC

Feb 15th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

To answer your question correctly more information would be needed. One important question would be the loan to value (LTV) ratio you are looking for on the new purchase. Many banks have guidlines about such a purchase. These overlays are critical to your situation. Althought rent and or your financial position may allow you to comfortably pay both mortgages the guideline may not allow. www. Homemortgagexpert.com call 855 411 Lend 1st National Bank a Federally Chartered Bank lending in all states. Peter Savino

Feb 15th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

Generally speaking, yes. If it really is a second home. But your activities will raise an underwriters eye because when refinancing the home, you swore and signed documents saying you will be occupying the exiting home. Turning the existing home into a rental right away is a violation of your mortgage you just refinanced. Look like you knowingly refinanced what will be an investment house fraudulently to get owner occupied rates. Now I am not saying you did this, but that is what it looks like.

Feb 16th 2013
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 527 contributions

The answer is a qualified Yes. There are several moving parts that need to be worked through. You really want to work with an experience Loan Officer in your area that you can "sit down" with and review your goals and options. The lender that did your refinance would be the first person I'd check with if you liked him or her and is local. If not, I would get a recomendation from the realtor you are considering to use for the purchase of the new home.

Feb 17th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 399 contributions

Before saying 'yes' there are additional details that I would need. If you prefer to work with a local, licensed Albuquerque lender please feel free to contact me. Charlie Sparks, www.GencorMortgage.com/csparks - 505.350.3745

Feb 15th 2013
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