Updated over 8 years ago on . Most recent reply
Can I qualfy For a 3rd Mortgage?
New to this site, and I’m not sure if I'm posting in the right place.
I own two houses, both single family. I have to move for work in the next year and I was wondering if I would be able to qualify to buy a third property in the new city. Right now I rent one house, and live in the other. Below are my numbers; I'm not quite sure how my two existing mortgages are treated with the DTI ratio when trying to qualify for a third. Any insight would be great! I have about 6-12 months to make some changes if it'll help my chances. I was thinking a FHA loan for the third house. I would really like to qualify for 500k, but I could probably work with less.
Revolving Monthly Debts (Shown on Credit Report): $2.607.89
Monthly Income: $8,378.83
Monthly Mortgages for Current Properties: #1 $329.86 and #2 $927.67
Rental Income: #1 $950.00 & #2 $1,300 (Estimated)
Most Popular Reply
Davey Rowe I would recommend going conventional as opposed to FHA so that you can use the rental income to offset the mortgages on the vacating property that you’re converting to a rental property. Depending on what city you are moving to; $500k may still be within FNMA/FHMLC High balance loan limit. If so you only need to put 5% down on your new owner occupy house.
From the limited info you shared, your dti should be fine but I recommend speaking to a Loan Officer to run quick numbers for you. Hope this helps.