Can I purchase a second home when there is a home mortage already under my name?

I know this may sound odd, but I just need good advice. I am 24 years old and my sister is 25. We live with our parents and help them out financially as well. My dad had attempted to do a mortage modification about 6 years ago when he lost his job but it hasn't gone on a positive route. There has been a lot of difficulties coming up, so we are looking to buy a home just in case we are unable to stay in our current one. But they suggested to my parents for my sister and I to apply for a loan as "first time buyers." My sister and I definitely want to do anything for our family so we have considered it, and my father says he will be paying the monthly mortage himself.
However, my concern is if I decide I want to buy my own home in about 3-4 years as my fiancee and I are planning will this mortage affect that? Will it be more difficult to do so? I will not be making payments towards the other mortage as my dad said he will be doing that but it will be under my sister's and my name. I have a very good credit score and my fiancee is currently trying to build his back up, but The house that will be my own will be under my fiancee's name and mine when we get married and move in together
(0) | asked by: Jocelyn Obando | share | 3 weeks ago | Report
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answer by Jose A Perez    |   Contact Me
You can purchase but I would have the rent coming to you as rental income. That way you offset the rent. You will need a rental agreement for the lender when its time. Then this home will be an investment property and the new one you can make primary.
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answer by Hope Abbott    |   Contact Me
It sounds like if your parents are leasing the home you may need to do a lease agreement with them and record of payments made to you or the mortgage company. If your fiancee is getting the loan in just her name then there will be no issues at all. If both names you may have to supply the information above that I mentioned.
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answer by Mickey Gower    |   Visit My Website   |   Contact Me
You may want to consider having the monthly payments as rental income to you and your sister This will add income to your future purchase and put you in a much better financial condition.
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answer by ADAM FERNANDEZ    |   Visit My Website   |   Contact Me
Your parents paying on the first home will have no relevance since yours and your sister's name would be on the mortgage, it would show that you are responsible for the debt. You can purchase a second home but it will be a higher down payment and that amount will depend on your credit score and such. Also keep in mind that the taxes on whichever house is not your primary residence will be significantly higher because it will not be homestead. Good luck!
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answer by Deborah Keller    |   Visit My Website   |   Contact Me
Jocelyn, You can purchase a second home even if there is an existing mortgage already in your name. The problem may be that even though your parents will pay that mortgage monthly, you are still responsible to repay it and it will affect your debt to income ratio when you plan to purchase in the future. If you are not planning to purchase for about 4-5 years from the time of buying a home to help your parents, then make sure they are making payments on time so it won't affect your good credit score. If your and your fiance's income is adequate, and your DTI is balanced) you should not have a problem getting another mortgage for a second property. Hope this helps. If I can help in any way with your purchase, please contact me.
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answer by Harjeet Bhatti    |   Visit My Website   |   Contact Me
You can definitely buy a home as your primary residence. You will have proof money going out from your parents account.
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answer by Jessica Simpson    |   Visit My Website   |   Contact Me
You can purchase a home and have your dad occupy the property. But certain loans require you to occupy the property so you would want to have this discussion with your lender when getting the loan on the first property. When you go to purchase your second home you will have to financially be able to qualify for both homes in order to do it. Also, the second property may require you to put 20 percent down. (Mortgage person can answer this for sure) But typically when you purchase your second home it is considered an investment property that's why they require 20 percent. If you would like assistance please feel free to reach out to me.
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answer by Mark A. Marcus    |   Visit My Website   |   Contact Me
As long as you are living in the home you can call it Primary residence otherwise you would be misrepresenting the occupancy. In the future if you decide to buy with your fiancee then you will need strong income to qualify with both properties so yes it will be more difficult. Your father paying or mother or you or sister has no relevance on the occupancy if you will live in the property than you can feel safe that you are not misrepresenting anything. If you will live in another property and not occupy it then you would want to get an investment property loan which requires higher down-payment. Whatever you do I would recommend you do not misrepresent any material facts on the application as doing so could be considered fraud. Good luck and I hope this better answers your question.
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answer by Mark A. Marcus    |   Visit My Website   |   Contact Me
Hi you can purchase a 2nd home with 10% down if you have good credit and verifiable income and assets. Typically the rates are slightly higher than a primary residence. If your credit is shaky then 20% down would be required. Good luck in your search!
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