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How do I qualify for a home loan if I already own a home?

I recently moved to OH alone from NY for a job. My husband & I own a house in NY that is up for sale, and he has stayed behind waiting for sale and is still working there. I'd like to to start the building process of a new home in OH as this can take 6months or more. I cannot qualify for both home loans on my own, and my lender would not consider my husband's NY salary because he isn't working in OH yet. I qualified on my own for the OH home, but contingent to NY home sale. Is there any way around this? Should I seek out another lender? by panic7_887_794 from Dublin, Ohio. Jan 2nd 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

Without seeing the complete scenario, it's hard to say, but in general, if you have enough income to qualify for both loans, you will be ok.. However if you don't have the income to qualify, then you will have to sell the NY home before you can get the loan for the OH home.. This also depends on how you are going about building a home in OH.. if you go to a new home sub division, then it's possible that the builder, with a large enough deposit, will start the construction of the home... if you cannot close on it when it's complete, then you forfeit your deposit.. And the builder is free to sell it to someone else... however if you're talking about building a custom home.. then you will need to obtain a construction loan, and it's doubtful that any lender will lend you funds to build if you don't have sufficient income to pay for both loans... 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

Jan 2nd 2013
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,908 contributions

Most lenders will not consider your husband's current income, unless his move is being coordinated with his current employer. Why? Because they know he will be leaving that job and that income will stop. If you do not qualify for the new loan, including the payment on the old loan, you will have to wait until the old one is sold. William is correct that you can probably find a builder willing to accept you as a buyer and start the process to build provided you are willing to put up a large enough deposit just in case you can't close. If you can't, the builder will keep the deposit. If his is a job transfer, then the new lender should take his current income into consideration. If not, then selling the old home has to be your priority. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jan 2nd 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,247 contributions

If you are obligated on the NY home I can't think of any way around it unless either there is an option the lender did not consider in qualifying you for the OH home (some are not as thorough as others), or your husband will stay in NY until he secures a new position in OH. Then his income could be considered, you would just be living apart. A good creative mortgage lender can help you double check. For example, FHA loans can be very flexible on DTI

Jan 2nd 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Depending on the situation, you can be approved for financing with a contingency to provide proof that the NY Property has been sold. Your husbands income should be able to be used as he will be joining you at some point and is fully employed now. If you have strong income and assets, there is a possibility to be approved for both loans at the same time. You would need to carry the debt of both properties as you know.

Jan 2nd 2013
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Jeff Cost (midwestlender)
#40 ranked lender in Ohio - 164 contributions

Based on your description it sounds like your loan was not structured properly. If your husband is currently employed and will be employed at time of closing we can use him on the loan. I am a lender here in OH and can help you.ENG Lending, A Division of Bank of England, always puts your best interest first. We would appreciate the opportunity to serve you. Please visit us at www.cincinnatimortgagerate.net. You will soon find that we are so much more than a Mortgage Banker; we are a company that is dedicated to empowering our clients and referral partners. Don't forget to visit our Facebook Fanpage at http://www.facebook.com/pages/ENG-Lending-Cincinnati/171183536269710?sk=wall Or Call Anytime 513-403-6260

Jan 2nd 2013
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Jeremy Redlinger (JeremyR)
#30 ranked lender in Minnesota - 191 contributions

Sounds tricky without being able to use your husbands income. Black and Grey states if your DTI is above a certain level you can not qualify for a home loan.

Jan 2nd 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,097 contributions

This is a common issue. For many people, the solution is simple. You may need to rent for awhile....

Jan 3rd 2013
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