Will this work?

**zugzug** · 08-23-2008, 12:08 AM

I am going to buy a second house to move into and rent out my first house. Here are my stats

-FICO 750
-Income 115000 gross
-50k assets
-5 year employment history
-No other debt

I am looking in the 400k range. My question is, will I be able to get a loan even though I have only 10k to put down?

**jamesww** · 08-23-2008, 05:15 PM

There are a few loan programs that can help you with this goal depending on what state you are located in. I would find it easier to answer your question if you provided me with how much your current mortgage is, what state you are located in, and how long you have owned your current home,

**zugzug** · 08-23-2008, 09:50 PM

I have lived in my current home for 5 years. I am in Northern CA (Sacramento area) My current payment is 1560 + 350 tax + 112 HOA. Rents for my type of house go for $1600 a month. Everything in my financial snapshot seems to be good except for my down payment, which will be about 2%. Can I even get a loan? Im sure I will have to pay PMI or do a 80-15-5 loan or something.

**jamesww** · 08-23-2008, 10:52 PM

Being in Sacromento is going to make it really tough to get a loan with your scenario. All of the zero down conventional stuff is gone. If you can get the deal closed fast enough you may be able to pull off a FHA loan and get the down payment from the seller via the Neiamiah program. But you would have to close the deal before the end of September.

http://www.nehemiahcorp.org/
http://en.wikipedia.org/wiki/Nehemiah

If you are going to pull the above deal off you need to find an agent and a loan officer versed in doing these types of deals fast.

**zugzug** · 08-24-2008, 12:22 AM

So even the PMI route is not possible?

**SellMyDigs.com** · 08-24-2008, 01:00 AM

i have heard that fannie/freddie wont buy a loan if there is not at least 30% equity in the first and that they wont count any of the rental income unless you have expierence in rentals. I have not seen an official policy so check with an appropriate professinal.

**zugzug** · 08-24-2008, 10:05 AM

So there is zero chance even through alternate routes like higher interest rates, PMI, 80-20 loans?

**jamesww** · 08-24-2008, 02:47 PM

Originally Posted by zugzug

So there is zero chance even through alternate routes like higher interest rates, PMI, 80-20 loans?

Most of the 80-20 loans are gone and from what I have heard the programs that do remain are not offered in the worst declining markets. Such as Sacramento. You can still get it done if you work fast by using a FHA loan and nemeiah. Just remember that you have to get it done before the end of September.

To find out exactly what is still available you need to speak with a Loan Officer in the Sacramento area.