Figuring out financing

[pioneer93]

I'm currently awaiting to close on my second house. I bought a home 3 years ago and have refined it in the last year to fix my credit and put money down on my 2nd home. I have a renter in my 1st house. I was wondering how to come up with money towards a purchace of a 3rd house.

Here's my problem. I'm an E-6 in the military making about 28K according to uncle. My credit score is about 725. I have no liquid savinngs. I have money in my TSP (Government retirement) and a Roth IRA. What do I need to do to buy a 3rd home? The only realist options that I can come up with is to wait 2-3 yrs and refi the 1st house again and chunck that in the 3rd or attempt to look for a business loan or grant. All the books I've read seem to assume that I can either put no $ down or come up with $. Problem is that I'm already pushing it. Any suggestions on finding capital to make this work.

Maybe I should wait a couple of years. But I know that Jacksonville will have a lot of people refinancing due to all the ARMS and speciality loans that came out in the last couple of years.

ANY help will be greatly appreicated. Thanks all.

[Randy (SELA)]

If you have equity in either one of your homes, you can cross-pledge that as your down payment on the 3rd. With your credit score you should be able to find a lender who will work with you and explain things in more detail.

[Aldo]

Adding to Randy's reply, don't forget 80/10/10 financing. That's an 80% mortgage, a 10% second mortgage back to the seller and 10% of your own money.

Here's a (very) risky possibility, assuming you have credit cards with enough available credit to cover your purchase expenses. Pay the required earnest money from whatever liquid assets you have and take a cash advance on your credit card(s) to cover the amount needed at the closing table. DO NOT do this more than 15 days prior to closing to prevent the lender from learning your source.
I do not recommend this, more especially to those with a lower credit score (asuming yours wasn't exaggerated), to anyone. A high vacancy rate, an unexpected major repair, uninsured damage, etc., etc. could result in bankruptcy. You worked hard to get that 725 and don't want to jeopardize it unecessarily.

[Greely]

Maybe look into a sub 2 deal or owner financing. Don't hang yourself out to the point that you cannot cover a few month's payment's if you do not have a renter in place. It will happen.

[optionfl]

pioneer93, you mentioned that you have ira roth. i would check into ira investing, this could be your ticket to ride.

good luck and latter

[pioneer93]

Thank you all for the suggestions. I must say that it shows me that I have a lot of learning to do in the financing department. I'm most likely going to have to wait on the third house for a couple of months. I just want to make sure that I'm not in getting in over my head.

I might have to talk to a mortgage specialist to help me achive my goals. Thank you. Thank you all from getting me to realize that there are more options out there and that I need a good head on my shoulders so I don't go into something that leave me in real estate ruin.