Trying to get a mortgage but not sure we'll qualify for anything...

[9877donna]

We have been trying to find out about different kinds of mortgages.Conforming,No Doc,Low Doc...Were looking for a low rate loan for around $170,000.We have $20,000 cash to put down on this loan.Our credit scores are all over 700+....
Our combined yearly income is $47,000.We presently own a house that has a $110,000 mortgage on it.
Is there any chance at all that we might be able to get a mortgage for the new house without having to sell our present house first?
If we decide to rent our present home instead of selling it can we put that amount down as income?? I don't know too much about renting/selling/buying.
Any comments or information you could provide would be really great!

PS I'm putting this in for my sister/brother in law and they have never filed BK.....

[MTG_BANKER_OH]

We have been trying to find out about different kinds of mortgages.Conforming,No Doc,Low Doc...Were looking for a low rate loan for around $170,000.We have $20,000 cash to put down on this loan.Our credit scores are all over 700+....
Our combined yearly income is $47,000.We presently own a house that has a $110,000 mortgage on it.
Is there any chance at all that we might be able to get a mortgage for the new house without having to sell our present house first?
If we decide to rent our present home instead of selling it can we put that amount down as income?? I don't know too much about renting/selling/buying.
Any comments or information you could provide would be really great!

PS I'm putting this in for my sister/brother in law and they have never filed BK.....

They will need to contact someone and let them review their options. THere are some out there for them. Assuming they have good credit scores, they can do a bridge loan if they have equity and roll in payments for 6 months and then not count in to the debt ratio. On the other side if they can rent it out they may be able to exclude the payment with a lease agreement. There are too many quesitons that need to be answered to give a good idea of what can be done. On the other hand if they can afford the payments for a while they might qualify for 2 mortgages, the underwriting systems will take higher debt ratios up to 65% sometimes, I would only recomend this if they have a good amount of reserves in the bank.

[9877donna]

Thanks for all the great info!

Thank you Mtg Banker for all the information.I will certainly relay that to them and let them know their options.

[emoney]

You may not like this email, but I cannot think of a more riskey thing to do than than buy another home while waiting for the first one to sell. This is especally true in this real market where homes across the nation declined 4.4% in value last year.
Regards,
emoney

[HHM]

If you are going to rent your current home, the bank will probably want to see a "firm" lease agreement in place and proof that a deposit has been made for the lease. In any event, at least having these items in place, will make getting the loan easier.

I am with emoney on this one, trying to buy a house in this market while your current house is unsold is very risky. In the end, it will come down to the fact of whether you have enough income to cover both mortgages within the lending criteria of the bank (for most people, that is simply not the case).

The reality is, for most people around the country...they are stuck in their current house. So short of relocating more than 80 miles for a job, I'd seriosly reconsider buying at this point.

[9877donna]

emoney and HHM,
Thank you for your replies.I totally agree with both of you.There are way too many homes in this area right now that have been on the market for over a year.I mean nice homes too.Not dumps.No one could hold two mortgages for that long.
At least no one I know.I think they are opting to get their house sold first and then apply for a mortgage to finance their next home.
No doubt the safer way to go.
Thanks.