Buying A Home Before You've Sold Your Current Home?
So, you've found the perfect home but you haven't sold your current home yet. What are your options? In order to qualify to buy another home while keeping the one you already have, you will need to qualify based on some general guidelines pertaining to income, credit, and assets.Below are some general guidelines to keep in mind:
Income: Your DTI (debt to income ratio) cannot exceed 56.999% if you’re utilizing a government loan such as an FHA Mortgage or a VA Mortgage. And 45% if utilizing a Conventional loan up to 417K.
Credit: For a VA loan, the minimum credit score is 580. The VA loan allows up to 100% financing, so there is no down payment requirement. For an FHA loan, the minimum credit score is 620, and the minimum down payment is 3.5%. For a conventional loan, the minimum credit score is 620 and the minimum down payment is 5%.
Assets: You will need to show proof of liquid assets to cover the amount needed for down payment and any cost involved with your purchase loan.
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