Buy another house?

Question

My husband and I just bought the house we live in three months ago. We got a Rural developement loan for 30 years fixed. We have very good credit, however we don't have much credit. My husbands job is being done away with and we didn't realize that it was going to be. There was no warnings. I am unable to work. He was offered a job at the other plant with a forty percent pay increase. However, we live almost two hours away. If we tried to sell our house what are the chances we could be approved for another one so quickly? We would spend all of his raise and maybe then some on gas. Our car already has 130,000 miles on it and I would worry about driving so far- plus that would really cut into our time together. What should we do?

Answer 1

I think your best option would be to rent out the house you just bought and rent a place to live closer to your husband's work. The only other realistic option would be to sell the house (probably at a loss, because of all the costs associated with that). So, you might as well just hang onto it until the market gets better. And, I wouldn't recommend buying a different house closer to his work, because there's the possibility that he'll have to move again. Then you're back where you started.

You also probably wouldn't be able to rent the house out and buy another one closer to his work, because the lenders aren't going to count the potential income from the rent as actual income for the purpose of calculating your debt-to-income ratio. They don't count this potential income because it hasn't been realized yet. And, even if it were counted, they only count 75% of the rental income.

Answer 2

Obviously, it is hard to answer this question without knowing more, so this is just one option to consider.  Although the housing market is bad, the rental market seems to be strong.  You might want to consider renting out the house you just bought, and renting in your new location.  I'm not sure if there are some stipulations with the type of loan you got, but since your original plan's have changed you should be able to get around those.

Answer 3

I don't think you'd have a problem getting approved for another mortgage once you've sold your current home.  The fact that your husband would be staying with the same employer would probably help.  Also, you will be able to deduct many of the moving costs from your taxes because the move will be work related (see the link below).

Answer 4

It is possible to be approved, subject to the sale of your current residence.  I have done relocation loans, such as this.

Answer 5

place this one on the market and get pre approved to buy another with this one selling at the same time an dyou can still move closer to the new job when yours sells

Answer 6

If you sell your house and have made payments on time it won't affect your credit score.  Your problem is that it may take some time to sell your house so your hubby may have to make the commute for a while.  You probably wont get approved for another house until yours is under contract.  You may end up losing money on your house because of the market and the transaction costs.  Is there public transpertation.  I would try to sell the house and have him commute until it sells.