Approved for second home with 684 credit score?
I am turning our first home into an upstairs downstairs daycare and will be purchasing another home next year and am wondering if my credit is good enough to be approved for a second home. Yes I have zoning that allows for a care facility and it will be only used as a business, I will also be turning the next home into another daycare center but it will be our primary resedence when we first purchase it.
Public Comments
- The short answer is no - you are going to need to be in the 740 range for FHA-grade programs and at least 720 for non-conforming loans. However, if you convert the home into a daycare first, you may be able to consider that a mixed-usage business and get a primary mortgage loan on the new house. You simply have to show that you (and not someone else) would be living in the new home. That can be a bit of a hard sell to the mortgage company, but if you can work with them and prove it's going to be your primary you may be able to get a mortgage based on that. Does your city allow a single-family residence to be converted into a multi-use property? You may have to file paperwork with the City before you can make a home into a business if you don't intend to live there. Some city and county codes require a filing, and some don't. You need to check in your area before you make any decisions. I'd recommend talking to a professional before making any decisions - someone who would know what's involved with a home-to-business conversion - before starting that project. If you can get the new home listed as a primary residence mortgage, you MAY qualify, but 720 would be a lot easier.
