All Forum Posts by: Rafa King

Thanks Kristen for your reply. It's my DTI issue. I have enough cash to put 20% down but this only allows me to purchase a home that's cheaper than my current one (even after counting my current home as rental). In the end, the bank won't let me downgrade. The only walk around is that I need to move out my current home for 3 months which I am reluctant to do right now and I want to confirm if the lender is true or not.

Correct. One rule of applying the primary home loan is that the new home price should be higher than the current one. My current house is at a lower interest rate and got appreciated a lot. Basically my income is not high enough.

I am planning to buy another house as the primary residence and rent my current one out. The bank said that they won't do it because the new house that I can afford to is cheaper than my current home value. Several walk-around were provided:

1. New house is closer to my work: not possible as my current address is very close already

2. Better schools: not sure if it works as my child is still in private preschool. Does it also mean as long as any school (such as high school) is better?

3. I move out of my current house for at least 3 months. That way my current house won't be counted.

It seems #3 is the only viable option but I am not sure if the mortgage broker is right or not. Appreciate if you have similar experience or any suggestion. 

Thanks!