Purchasing OO property while underwater on current home

[Justen Ashcraft]

Asking this question for friend, as we haven't been able to get a positive answer.

She owns a property that she bought in 2007 at the peek. worth about 145k and owes about 147k. She wants to keep it as a rental property and purchase a new OO property because her family is growing and she and her husband + kids need something bigger.

She has been attempting to get pre-approved, but they won't even discuss it without 20-30% down, or that much in equity in the current home, which isn't going to happen. Are there any programs or strategies out there that she can use to purchase a new OO property while keeping the current house as a rental until the value comes up and she can sell it? Her credit is 800+ and DTI is fairly low. Thanks in advance.

[Wayne Brooks]

If her DTI is okay, with both mortgages, she should be fine. Something may be wrong in her approach....it should be "I want to buy an owner occupied , primary residence". The current home would become a rental, and she has to qualify for both mortgages, without any consideration for rental income. If her current loan is FHA, she can't get another one. The suits aren't stupid, they don't like losing money. Homepath loans don't exist anymore.