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What do I do about financing two homes?

I have to live within our city limits for my line of work. We would prefer to send our sons to the schools in a neighboring suburb which is literally one block from our current home. There is a modest home for sale right down the street in our area.What are the chances of being approved on finance for two primary residences? I imagine it would depend mostly on our income/debt ratio, which is great. We also have outstanding credit. Just wondering if lenders would completely object to this.We are looking at it as not only being able to send our sons to much better schools, but also as a long term savings investment.Any thoughts? by pandor_925_663 from Scottsdale, Arizona. Oct 6th 2011 Reply


Walt Terry (ARMortgage)
#6 ranked lender in Arkansas - 11 contributions

You cant do two primary residences however you might be able to call one of them a second home and if so the down payment and rate are pretty close to the same as the primary residence.

Oct 6th 2011
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Rich Alino (PrivateBanker)
#56 ranked lender in New York - 41 contributions

private banking would allow us to blanket the 2 homes, but your net worth status would be the deciding factor. you may email us for details on the qualifications at info@superjumboloans.info

Oct 6th 2011
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Mike Tompkins (mike@wjbonline.com)
#56 ranked lender in Arizona - 4 contributions

Very unlikely you will be able to consider both a primary or even one a second home if they are both in close proximity. Second homes typically come with a distance consideration. IE buying a property up in Flagstaff would be considered a second home. More than likely you would buy one as a primary and the other property located within the city would be considered an investment properyt. We have primary residenses with as little as 3% down in Arizona and Investor Financing at 20% down. A homepath loan (Fannie Mae owned Property) will allow investor financning with 15% down and no mortgage insurance. Rates are great so a really good time to take advantage of the market. Especially for long term investments. You have options. Not sure on the ages of your children but no occupying co-signerns on an FHA product is also possible.

Oct 6th 2011
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Roger Farah (RogerFarah)
#321 ranked lender in California - 8 contributions

Hi:My name is Roger Farah, and I am happy to help you with your inquiry.There are a couple of choices that you have. An optimal scenario would be to purchase and move to the new home and rent the other one out. This way you are earning income on the current home to help offset the mortgage, property taxes and insurance, and you are not carrying two mortgages. I am happy to help you to run through some scenarios with no cost or obligation. I am a Mortgage Lender, and also a Financial Planner and I am happy to help.Please call me at (707) 303-2914 direct or email at rfarah@mhmb.com. Thank you. Roger Farah

Oct 6th 2011
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,707 contributions

You have to call one of the homes an investment property and investment properties require 15% to 20% down. You should talk to a LOCAL mortgage professional, like my self, and let's look at your particular scenario much closer... We're located in Scottsdale. WilliamAcres.com 480-287-5714

Oct 6th 2011
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I would agree with Roger that purchasing the new home as a primary with the intent of turning the current property into an investment property will give you the lowest down payment and rate on the new home. Any questions feel free to call me at 1-877-641-4833 x304 or email to rmorgan@alliedmg.comRoss MorganAllied Mortgage Group

Oct 6th 2011
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Lynne Dewar (ldewar)
#47 ranked lender in Arizona - 16 contributions

You can only have one primary residence. A second home would have to be in a resort area or have a justified reason to own a second home. One block away, even if it is in a better school district is not enough of a reason. You would have to purchase this property as an investment property.

Oct 6th 2011
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

I have seen several variations on answers to your question, but your answer lies in your question. First of all, an individal can only have one primary residence. If your employment status requires you to live within the city limits, and the new home is not within the city limits, the new home cannot be your primary residence. To purchase a home, calling it your primary residence and then not move into it would be considered mortgage fraud. Now, if the new home IS within the city limits, and you DO intend to move into it, the fact that your move is specifically to allow your children into a different or better school district would be a strong motivating factor, and you would need to debt service qualify for both mortgages without including any potential rental income from the property you are vacating. If you would like to discuss your situation further, please contact me at 480-889-9000

Oct 6th 2011
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 225 contributions

You need to call it what it is an investment property. As Bert said in his answer, you can only have one primary & that is the current property you're living in. You would never be able to call this a 2nd residence & for anybody on here that has given you that answer is totally incorrect. In this new mortgage environment, Lenders & investors or extremely careful when reviewing files submitted as 2nd homes!When talking to your bank or financing individual you need to be very clear on the front end so they can steer you in the rigjht direction & the right loan. People are to going to jail these days for misrepresenation.Thanks

Oct 6th 2011
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