How long do I have to wait to apply for another mortgage?

Question

If I buy a house with an FHA loan or conventional loan, how long do I have to wait to buy another house with another FHA loan or conventional loan? I assume that getting a mortgage in my name will lower my credit score a little bit. So would I need to wait 6 - 12 months to apply for another mortgage?

Jassem A. · Answer

Wait a year if you would be moving to the next property otherwise expect to pay 20-25% down to buy the next property as in investment. You can use equity in your current home as a downpayment on the investment but lender will probably want to see 2-6 months of reserves for both properties as well.

Michael Noto · Answer

Account Closed What you need to do it sounds like is work with a lender that does portfolio loans and doesn't report to credit for their loans so it won't impact your DTI ratio when you buy your personal residence.

Will you be charged a higher rate?  Sure you will, but not much more to the point where it will completely throw off the cash flow on a 1-4 family purchase.

I work with a lender that lends in GA that does portfolio loans, doesn't report to credit, and you can hold title in a LLC the rates are no different than if you held in your personal name.

Jassem A. · Answer

Account Closed

Savings are important to qualify especially conventionally. The income from the rental will usually count at 75%. If you buy with a commercial lender then it probably won't show on your credit but it may show on your taxes.

Account Closed · Answer

@Jassem A.

I have a new LLC that I've been talking to BB&T about using to finance a property but I can get better terms and better cash flow putting the property in my own name.

Account Closed · Answer

@Jassem A.

I want to buy a rental property soon, but I also want to buy a new primary residence for my family. If I buy a rental now, I concerned that I won't get approved for the loan for my primary residence.

You bring up a good point about reserves. I've been focused on credit score and debt to income. I haven't even thought about savings.

Brandon Ingegneri · Answer

It all depends on your numbers. If your DTI is where it needs to be, you have cash in the bank, and your credit is still solid, go for it. If the supporting numbers don't allow you to, then you'd have to work on building up the specific area that needs attention.

How long do I have to wait to apply for another mortgage?

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