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Vicki Said:

Can I get a mortgage on an investment home after purchase?

We Answered:

I have known people to arrange the financing to close on the following day they make the original purchase. The major difference between the mortgage on the investment house will be the higher interest rate and higher insurance costs associated with non owner occupied property.

Todd Said:

Is it possible to sell a house with negative equity, and roll that into a new home purchase mortgage?

We Answered:

No.

You could contact your mortgage lender and attempt to do a short sale, where they agree to accept less than what is owed, but this does damage your credit and is time consuming and a roll of the dice. Other than a short sale, you can wait the market out or bring cash to closing, you cannot carry over debt from one property to another.

Rosa Said:

Which one Credit or on income to purchase a home mortgage?

We Answered:

It is every individual's responsibility to monitor their own credit reports and correct/dispute errors. What is your question?

Jamie Said:

Can funds be withdrawn from a Roth IRA w/o penalty if used to pay off the mortgage of a 1st home purchase?

We Answered:

Sorry, you cannot use the IRA funds to pay off your current mortgage to avoid the 10% penalty. You can use up to $10,000 to purchase a new home if you haven't lived in a home you own in the past 2 years.

So, if you want to buy a new home and want to use some of your IRA funds, you have to sell your current home, live with someone for next couple years, and then buy your new home.

Johnnie Said:

Home Purchase Mortgage Options With 15% Down Payment FHA or Conventional Loans?

We Answered:

Yes 20% down would be your perfect world but if you must do 15% down then I would ask the loan officer to give a print out showing the PMI rate on conventional compared to the FHA MIP rate. No up front PMI like FHA's MIP. Monthly PMI rate should be lower than FHA's with your great credit score and 15% down. Unless they've changed the rules since I got out of the business...You're PMI drops off when you have the house paid down to 80% of value. FHA's MIP falls off when you have it paid down to 78% of value. (And yes you would need an appraisal to prove this in 5 years.)

**Upfront MIP can be rolled into your loan amount and doesn't have to be paid out of pocket at time of closing.

**But where in the world are you thinking of buying that would require $17,250 for your transaction? That's at least $2,000 too much for closing and upfront MIP where I come from. Sellers are allowed to pay 6% of sales price (in closing costs and prepaids) for FHA and for conventional loans if you write your offer that way and they accept it. (Sellers can pay 6% on conventional if you are putting at least 10% down and if your contract is accepted specifying that the sellers contribution applies to your prepaid items as well as closing costs.) That should more than cover everything. We are in a buyer's market. The seller should contribute to closing costs! I understand that some sellers right now are victims of falling house prices so maybe they don't have enough equity to help pay many closing costs...but they need to agree to pay part of them if they want to get their home sold! Hope this helps!

Bobby Said:

Can I "short sale" my house and purchase another home mortgage?

We Answered:

No. The short sale will reduce your credit score to a point where you will not be able to obtain another mortgage.

If you try to purchase now, the new home will be considered an investment property, which you will need 20% down and this mortgage will carry a higher interest rate. Then you foreclose on the first home, and you are stuck with that higher interest rate for years.

If you have a second home, the lender will not allow a short sale on the first.