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Melanie1978

Starting over and would like to purchase a new house in new state.

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I came here about 15 years ago to get help buying my first home. I fixed my credit and my husband at the time and we got into our first home in Texas. We had issues and eventually divorced. I had the loan modified and managed to keep it, ofcourse the long process of modification left me with a lot of lates. 

 

I moved to California three years ago due to the better salaries for teachers. My quality of life and finances are MUCH better. I was able to make repairs to the Texas house and am renting it out now. 

 

I am looking to buy a house in California in the next two years. How will my Texas mortgage affect me? I want to keep it and yes it has equity. I am not interested in selling because it’s my safety net. 

 

I do not have much credit only about $3,000, a car loan (nearly done) and consolidated student loans. 

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Bump

 

I believe the mortgage payment on the rental home would count against your DTI, and if you've been renting the house out for a while you can use some/most/all of the rent as income.

 

Verify this with someone else.  :)

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CV is correct, the payment will definitely count against your DTI.  From what I recall, and through quick research you are able to use 75% of the rental income towards qualifying for the new home.  This will be based on the actual income (if you have 2 years of history via tax returns) or market value.  It seems that some lenders require the 2 years before it will count.  The best bet is to speak with your mortgage broker or bank upfront and ask, as it seems this can vary.

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Thank you to you both. In two years I will have two years of rental income that I will be able to verify and document with tax returns. I will be looking for a broker or bank to speak to in order to get everything in order. 

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43 minutes ago, Melanie1978 said:

Thank you to you both. In two years I will have two years of rental income that I will be able to verify and document with tax returns. I will be looking for a broker or bank to speak to in order to get everything in order. 

I've had 100% great experiences with the mortgage companies I've found on Zillow Mortgage Rates.  

 

3 of the last 4 real estate finance transactions were done with companies I found there.  

 

Third Federal has an outstanding ARM products and they lend in most states.  That was the 4th of the 4 transactions mentioned above.

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Since OP is a teacher in California is there a program like Homes for Teachers or something like that which would put her in a home relatively inexpensively?

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On 6/7/2019 at 7:53 PM, Melanie1978 said:

Thank you to you both. In two years I will have two years of rental income that I will be able to verify and document with tax returns. I will be looking for a broker or bank to speak to in order to get everything in order. 

Save like crazy for a down payment and a sizable emergency fund.

 

Off the top of my head, the last ~12 months have brought us the following joys of home ownership: 

 

- Furnace repair ($400)

- New refrigerator ($1,200)

- New HVAC system ($10,000)*

- New water heater ($1,300)*

 

 

* HVAC system and water heater died about two weeks apart. 

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