My parents, from Texas, are in their 70s and homeowners. Having an existing mortgage now with credit scores ranging from the mid 600s to low 700s, they desire to buy another home that is new and priced below $100,000. They want to immediately get out of t

ANSWER

The BIDaWIZ Team's Answer:

They will be eligible to borrow money, to purchase

a new home; however, the downpayment amount will

probably have to exceed 20% of the purchase price. After the

purchase is made, they should seek to refinance the now vacant

first home, and use the cash to further pay down the mortgage

on the new personal residence. Thus, if they experience financial

difficulties, the mortgage payment, on the personal residence will

still be affordable; even if they are unable to make the

mortgage payment on the rental house.