Question
I own a $100,000 FHA home, can I qualify for a second home via Conventional?
I just purchased a $100,000 FHA home (%3.5 down) and would like to buy a second home as an investment property in 6-12 months. I put in about $5,000 in upgrades (new paint, moulding, french doors, fixtures, kitchen cabinets, sinks, tiles, etc) to increase the home's value and have about $10,000 saved up. My plan is to take out an equity line of $10,000 - $20,000, so that I can go with a conventional loan and put %20 down on another home priced around $100,000. The problem is, I only make $16 an hour or roughly $30,000 a year. Will I still be able to qualify for a second home in my desired price range? If not, what can I do to qualify?
1 month ago - 2 answers
Best Answer
Chosen by Asker
The only way you will stay in budget is to refinance the 1st home with a conventional mortgage after your at 80% loan to value, lease that home and purchase another primary residence. Honestly, there are too many easier ways to make $ in real estate in the current market than being a landlord.
1 month ago
Asker's Rating: 
Other Answers
You do not make enough to qualify for a 2nd mortgage. You would be stretching yourself way too thin. You have to remember the repairs on a rental, the tenants who skip out or don't pay. The bank wants to know you have the income to carry both mortgages.
by My Take on It- 1 month ago