QUOTE
HI,
My question is, I currently own the home I live in, well kind of, I have a home equity loan out on the house curretnly in the amounty of 47,000.00 The house is in my old married name, and I obtained it soley through as a marital asset. I have been at this address for 17yrs.
I am now remarried, and my current spouse and I just refinanced the home equity loan to get a better interest rate than what I already had. We now have 10 years left to pay on the thing, as apposed to 15.
My current husband's name is not actually on the deed, only the loan.
We now are considering purchasing the home next door to the house we live in. We would like it to be a rental property, so it will pay for itself, meanwhile, I plan on selfishly accumulating more lawn from it for the current home we live in.
So:
-would my husband still be eligible for the first time home owners loans?
-He is a Veteran, and has papers for a guarantee VA loan, which is just like a co-signer.
-The people who currently own the home, no longer live in the house, they live in another State. They are willing to hold a second mortgage for us, because we have next to no money to put down on the house.
I have a very good job which I have been at for 3 1/2 yrs. My husband has been at his job for 3 yrs. The problem is, that 3yrs. ago, I had to file bankruptsy due to the mess the first husband left me in. My husband also has had some financial problems in the past with devaulting on credit cards.
We now make a decent living, and have managed to pull ourselves out of some really tough situations.
My questions are: which is the best avenue to pursue, considering our circumstances?
Any advice you have to offer would be MORE than appreciated.
No, I do not have a web site to advertise on, but word of mouth has always worked for me.
My question is, I currently own the home I live in, well kind of, I have a home equity loan out on the house curretnly in the amounty of 47,000.00 The house is in my old married name, and I obtained it soley through as a marital asset. I have been at this address for 17yrs.
I am now remarried, and my current spouse and I just refinanced the home equity loan to get a better interest rate than what I already had. We now have 10 years left to pay on the thing, as apposed to 15.
My current husband's name is not actually on the deed, only the loan.
We now are considering purchasing the home next door to the house we live in. We would like it to be a rental property, so it will pay for itself, meanwhile, I plan on selfishly accumulating more lawn from it for the current home we live in.
So:
-would my husband still be eligible for the first time home owners loans?
-He is a Veteran, and has papers for a guarantee VA loan, which is just like a co-signer.
-The people who currently own the home, no longer live in the house, they live in another State. They are willing to hold a second mortgage for us, because we have next to no money to put down on the house.
I have a very good job which I have been at for 3 1/2 yrs. My husband has been at his job for 3 yrs. The problem is, that 3yrs. ago, I had to file bankruptsy due to the mess the first husband left me in. My husband also has had some financial problems in the past with devaulting on credit cards.
We now make a decent living, and have managed to pull ourselves out of some really tough situations.
My questions are: which is the best avenue to pursue, considering our circumstances?
Any advice you have to offer would be MORE than appreciated.
No, I do not have a web site to advertise on, but word of mouth has always worked for me.
My response:
I am sorry but your particular situation is too specific for me to be of much help. My expertise is mostly in the business and commercial real estate areas of lending. Therefore, I could not give you a good answer if your husband would qualify for a VA "first-time homeowner program". I also could not tell you how hard your bankruptcy and your husband's credit problem would affect you if you were to do a residential loan. However, I can approach the situation from a rental property loan alone and give you my opinion so far:
Assuming you are going to purchase the new house, use it as a rental property and get a rental property loan. Let's list the pros and cons.
Pros:
- The current owners are willing to keep a second mortgage. (This is a big plus since it will allow you to buy the property with no money down and will make it possible to meet the bank's Loan to Value).
Cons:
- Your credit and your husbands will affect the request greatly. I am afraid a lot of banks would not touch your loan if you are only 3 years removed from the bankruptcy.
- There is no tenant on the property. You will be using estimated rental income as a source of repayment. This is another big hurdle. It is an unwritten requirement that properties financed have to show repayment from current rental income. It is possible to get over this hurdle if for some reason some of the units are being renovated or there is a special circumstance. In cases like that, the loan is usually structured so that the first six months are interest only until all of the units are rented.
In conclusion, your loan seems particularly difficult to achieve (at market rates from a "serious" institution). You will need to find a lenient lending institution and probably a lending officer that is willing to help you through the process and champion your request. I suggest you talk to a couple of lenders in your area. The initial conversation can be made over the phone. Give him as much information as you can, and hear what he has to say. You should also talk to the sellers and see what kind of percentage of the sale are they willing to finance (I would suggest getting them to finance at least 30% to make the lender more agreeable )
Thanks for the visit and I hope this was of some help.