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Updated almost 8 years ago,
Questions about applying for loans
Hey all !
I have a SERIOUS question. I bought a two fam house 9 years ago which I am living in and renting one part out. I fell in foreclosure 6 years ago and my credit was dealt. I recently got a loan modification (5 months ago) fix for 40 years. I was told a new bank now owns the loan...meaning they bought it from the original bank. I signed the 40 year contract as the borrower with my new mortgage payment (which I'm ok with it). Tenants covers more than half the mortgage payments and pays their own utilities.
Let's get to it...
I check my credit often since I have credit monitoring, and my current loan does not appear on my report. In fact, it's showing as "satisfied", as if I finished paying a $450k loan. I'm also great at building credit so I use my credit cards to boost up my score and other tiny loans. I'm now at a 720 score coming from 557. Since the loan is showing "satisfied" (even though I still owe the amount) my DTI is very low because i make a great salary and my report is just showing a credit card debt for $120 (which I'm paying). Let me finish...I have enough funds to buy another property (2 fam) cash $35k, which can easily be rented out for $1900 a month (hey it's New York). I also have money to rehab it. Now my question is, when I'm done rehabing it and want to pull cash out, should I just pretend that I don't own a house already since it's not showing? Will they found out through me filing taxes and claiming property tax? Also, what about if I want to do conventional loan? Also, how come it's not showing on my credit report? Will it eventually pop up on my credit? I can easily qualify for a conventional loan. Great income, great credit. I'm also a city employee, which is another great incentive to get qualified. I'm interested in building a solid RE portfolio but I also don't want to do anything illegal and go to prison. PLEASE HELP