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Why cant I have 2 conventional loans?

I have a conventional loan I'm attempting to relocate and obtain a new owner occupied home. I was told i couldn't have another conventional loan. Why is that? All of the places I can afford within the new state dont qualify for FHA loans due to hoa delinquency. Any suggestions? Selling my current home isnt an option. by ek2077_756_468 from Covington, Georgia. Jan 26th 2012 Reply


Ignacio L Taboada (itaboada)
#49 ranked lender in Georgia - 23 contributions

If you are moving to another state it sould not be an issue to have two conventiona loans.The issue could be wheter you qualify with both payments.If you rent your existing home you will not be able to use the rent to offset your income you have to qualify with both payments.If you have any more questions you can reach me at itaboada@phoenixglobalmortgage.com

Jan 27th 2012
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Christina Murphy (ChristinaMurphy)
#32 ranked lender in Georgia - 9 contributions

If you can provide more information, it would help, but in most circumstances you can have 2 conventional loans out at the same time. The "deal breaker" would be if you can't support both payments. Call or email me and let me know the rest of the situation and maybe I can help you with your financing in GA. Thank you, Christina Murphy, Oglethorpe Mortgage, 678.493.3366.

Jan 27th 2012
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I was told without selling my current home i would only qualify for 110k which is fine. The only thing is those homes are in areas where people arent paying hoa dues. I was told i can do an fha loan since i already have a coventional. Most of the homes i am looking at say no fha. only conventional or cash buyers.

Jan 27th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

You have several different issues to contend with. If you are moving to another state and have not yet sold the house you are leaving, underwriting is going to require that you be able to support the payments on both homes as well as all of your other debt. Assuming your income is high enough to keep your debt-to-income ratio at an acceptable level, having a second home should not be an issue. However, your plans for the old home factor heavily in obtaining the new loan approval. If you are upside down (have negative equity) one of the considerations (or risks) lenders require underwriters to look at is the likelihood that you could "buy and bail". This could prevent them from approving another loan until the existing one is retired. If the property is being kept as a rental, and is under a lease agreement, this should negate that concern.Regarding sellers not wanting to accept FHA offers: Many times sellers are advised by their real estate agent not to accept FHA offers for several reasons. It could be because the property is in poor shape. Or it could be the home doesn't meet FHA's anti-flipping requirements. For more details, see my blog article "Seller Won't Entertain FHA Offers".Contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will be able to properly advise you on your qualifications for a new loan while you still own the old home. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Jan 27th 2012
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