Want to buy a new home... Not sure if I qualify...

Amanda · Joined: 10 Sep 2009 Posts: 1

Hello, I would like to either sell or rent out the home I'm in now and buy a new home that is a bit less then what this home costs. It also has an inlaw apartment that I could rent out.

I bought this house in February of this year. I became unemployed at the end of May. My husband is paying the mortgage.

I would just buy a new home under my husbands name but he doesn't have good credit. I was told by the bank that I would have to do the application all over again. Which means I won't get approved because I'm on unemployment.

So, what are my options? Is there a bank that would give me a loan based on the fact that I already have a loan? Should I rent out this house to show income so that I can get the new house? Would the fact that I could rent out the inlaw apartment in the new home make any difference?

I'm so confused! Thanks for any imput!

Chuck DeMonte · Joined: 17 Apr 2009 Posts: 51

What is your husbands credit score? What is making it low late payments collections etc?

blegendary · Joined: 22 Sep 2009 Posts: 9

Hi Amanda.

There are a couple of different things that we can do in this situation.

One thing you can try is to add a non-occupant co-borrower through certain programs. Do you have any family or close friends that would be willing to sign? If so, they would need to have good credit and income.

It would help if we knew what the ballpark estimate of the credit score was...

Another thing you could try is a credit repair program.

The more information you supply, the more we can help.

Thanks!

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

Yes, the lender can include some of the rental income in qualifying you. The amount would be determined by the appraiser, who might take into account the rent guarantee, depending on the guarantor and other factors.