I may be transfering for my job, I own a home now would I qualify for a second mortgage?
by Mortgage Rates on Wednesday, September 15th, 2010 | 2 Comments
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If you short sell, you won’t be able to buy another house for a while. Consider renting your current home and buying your new home with an FHA loan and 3.5% down. You didn’t give details on your financial situation so I don’t know if you would qualify or not, the 630 would qualify, so it’s at least a place to start exploring. If you walk away or short sell you will be renting for sure.
Whether you would quality for another mortgage depends on additional information, such as your assets and income. A meeting with a lender (bank, etc.) to discuss pre-qualifying for a loan would give you a lot more insight into how much you would qualify to borrow, without committing to a loan. Pre-qualifying also prepares you for a faster home purchase should you quality and end up wanting to make an offer.
That said, your situation sounds a little perilous. You will have to come up with the difference if you sell for less than you own, out of your own pocket. Plus possible sales commission costs and repair costs. Could you rent out the old house until market conditions improve? Can you rent in the new location for a period of time until you sell the old house? I would probably not consider buying a second house until you sell the old one because you could be saddled with a lot of liability for a long period of time.
You should avoid a short-sale if at all possible as this will damage your credit and make it almost impossible to get a new loan for quite awhile. It would be better to rent in the new location for a time.
Finally, maybe your employer can assisting with the situation. You should ask them about a moving/relocation bonus or covering some moving expenses to help you out if you haven’t done so already.