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How Do We Qualify Out Of State?

by Jill

My husband and I are both ordained pastors (two different denominations). We reside in a parsonage, so we have no equity built-up. However, we are both being offered calls out of state and will need to buy a house.

I am a first-time home buyer. We cannot start our new calls before we move; we cannot move and retain our current calls. There will be no gap in income and two housing allowances to use. However, we are having issues obtaining a lender.

We will have contracts containing our full salary information once the calls are finalized--we will have proof of our jobs in other words. However, we need to have a place to live and do not want to keep up-rooting our children by renting for a few months and then moving into our home.

Our housing allowances will (combined) be 2400.00 a month. We will have to give 30 days notice in our current calls before moving to our new calls.

If we were moving in-state this would not be so difficult because we could use our local bank. But, moving across the country (from PA to IL) is causing headaches.

Should we wait until we have contracts? That is about a month down the road...we would like to get some things moving...but no one seems to be able to give us straight answers!


Hello Jill,

Thank you for stopping by my site and asking your questions. I must say, this is the first one for me. I never had a question like this one before.

Since you're a first time home buyer, the FHA Home Loan would be your best loan product to pursue. If you use the link I provided, there you will find lot's of info.

I would suggest you get all the loan documents done and out of the way for the FHA home loan. You will need proof of income for when you move, so the contract would be best.

However, you may be able to get letters of intent from your new calls to help the process along. If the new churches want you bad enough, they should not have too much trouble giving you this. You just have to make sure that is where you want to work, salaries agreed upon etc.

So what I'm saying here is: get all the initial paperwork done with a national lender and get yourself pre-approved for a home loan based on your projected income.

Then once you have the new contract for employment, you could maybe go to your new location and begin shopping for a home. I would do as much shopping online as you can first. Line up several homes you want to view, go there and make your selection and sign a purchase agreement.

Your mortgage pre-approval letter will serve as proof to the Realtor you are a serious buyer. They are a little shy about working with people who have not been pre-approved first.

Now be sure you are getting pre-approved and not pre-qualified. There is a big difference. You want the lender to get you all approved for a mortgage based on the maximum loan amount you can qualify for with the property address to be determined. So the underwriter will have already approved your file and issues a pre-approval letter.

Once you have this letter from the lender, it's like having cash in your hand. Then go shopping for a home. The only bit of paperwork left would be your contract for employment and the home purchase agreement. They should be able to close the file in 30 days for you if you follow these suggestions.

I hope this helps. Please share my website with other people you know that can benefit. I try to help people understand the complicated mortgage process.

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Colorado / Virginia Property

by Karen

My husband and I co-own a house in Virginia. We have lived in Colorado for 5 years now, and when we moved to CO (military retirement and relocation for my job), we could not sell our home in VA, so we rented it out.

The VA home has a 1st mortgage at 5% and a very high interest home equity loan (8%!) that we would like to combine into one, lower-interest rate loan.

BTW, we bought a house in Colorado.

Right now, we're being told that the house's 1st Mortgage is owned by Freddie Mac, so we can only refinance that first loan (not the 2nd). Help - My income is higher than my husband's, and I think I can qualify for the loan by myself - Can I buy the house from my husband and refinance it?


Hello Karen,

I would like to say thank you for visiting my website and asking such great questions. This situation has me a bit stumped here.

Since the laws of each state are so different I cannot really give any kind of legal advice. (That's my little disclaimer LOL) You may need to seek some legal advice on the transfer of property between a husband and wife.

But the problem you may run into is the mortgage. It sounds like you both are on the current 1st and 2nd mortgages. If that is the case, you really cannot get your husband off the mortgage unless the house is sold and money transfers between the buyer and seller.

I have never heard of a case where one marriage mate buys the house from another unless it was a divorce. Then it would be a new mortgage that would be required to get the other one off the old mortgage.

If the house has good equity, I cannot understand why you cannot refinance the house into a new 1st mortgage and pay the second mortgage off.

Freddie Mac operates under the federal lending guidelines when it comes to (LTV) loan to value ratios, (DTI) debt to income ratios and credit requirements.

The only real problem I see would be the LTV. So are the balances of your first and second mortgages combined equal to say 80% of the homes value?

For example:

1st mortgage balance = $80,000
2nd mortgage balance = $20,000
Total balance owed = $100,000 (your refinance amount)

House appraises at $125,000

80% of this appraised amount is $100,000 so in this example you would roll the two mortgages together and have a single mortgage for $100,000.

Use my mortgage calculators page to help you find the payoff figures.

The most important part of this is the LTV at this point. Once you have that at say 80% (preferred amount to avoid PMI), then you should have no problem getting a lender if your credit scores are good and income is sufficient.

I hope this all makes sense to you.

Best Regards,

Jeffrey Ragan

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Out of state move

by Sara

We are moving out of state soon and are hoping to purchase a home. We are wondering if we can use our bank here to process our mortgage or if we have to go through a bank in the state to which we are moving.


Hello Sara,

Thank you for stopping by my site and asking a question.

The answer to your question is rather simple in my mind.

If your bank has no problems with you using them while buying a house out of state, there should be no problem. With overnight couriers, email and the ability to send documents in digital format this really makes it easy.

The real question is if your bank can feel good about putting a lien on the property when it may be far away.

Often times banks may use their own appraiser and if the house is a good distance away, that may be where the problem comes in.

When I was in the mortgage business, I closed loans all over the USA. I worked for a large national lender and when I started working with a customer in other states, I just found local vendors for the services needed. People like appraisers, home inspectors, title companies and such are all important parts of the process.

With all of that said, if you have a small local bank, like the kind where you know everybody, you have your favorite people you work with etc. I understand why you may want to stay with them.

Just be sure you ask the person you deal with for the 203b FHA loan product. That is the preferred choice for many first time home buyers since it offers the best options.

I hope you find this post helpful.

Kind Regards,

Jeffrey Ragan

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