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want2beamom
Love my boys soooo much!!!
Member since 8/06 10164 total posts
Name:
True love doesn't end with happily ever after...
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renting out your house, while buying another
can you tell me your experience? Thanks!
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Posted 4/14/12 5:23 PM  |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: renting out your house, while buying another
Unless you have no mortgage on the first house, I am not sure you will qualify for a mortgage on the second house (unless you are purchasing the new house for cash). The bank would require you to recast the mortgage as one for a renter and the interest rate is a lot higher for those kinds of mortgages. Sorry.
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| Posted 4/15/12 12:14 AM |
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Suzie4
LIF Infant
Member since 1/12 168 total posts
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Re: renting out your house, while buying another
if you have the money for the down payment on the new home it shouldn't be a problem. It's if you don't that it becomes a problem.
HTH
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| Posted 4/15/12 2:30 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: renting out your house, while buying another
7 years ago our bank counted 75% of the rent (from a signed lease) to go into the whole second mortgage equation. I'm not sure how things have changed.
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| Posted 4/15/12 5:38 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: renting out your house, while buying another
Posted by Erica
7 years ago our bank counted 75% of the rent (from a signed lease) to go into the whole second mortgage equation. I'm not sure how things have changed.
they haven't- the bank will do the same thing now
it can be done
it all depends on your finacials- I would speak to a mortgage professional to make sure it's fesiable
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| Posted 4/16/12 12:34 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
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Re: renting out your house, while buying another
A friend of mine just did this. She had to submit the lease agreement from her tenant in order to qualify, and a neighbor on my block did the same. She now owns 2 homes on the block and rents out one, so it is possible, there are just stipulations. I would talk to a professional
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| Posted 4/16/12 12:51 PM |
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Re: renting out your house, while buying another
I've been told by mortgage people I work with that a big factor is whether you are upside down on the home or if you have equity. If you have equity in the home, then some rental income can be counted toward your debt-to-income ratio. If you don't have equity, I've told that the underwriters will consider the rental as a "mitigating factor" when approving a loan, but it doesn't count as "income."
But I agree that what is possible depends so much on your individual circumstances, so the best thing to do is to speak to a mortgage professional (or a few) to figure it out!
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| Posted 4/16/12 12:53 PM |
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juanvi
Get Out!
Member since 10/06 4463 total posts
Name:
Christina
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Re: renting out your house, while buying another
I'm about to do it. My dh does mortgages and says it can be done.
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| Posted 4/17/12 5:36 AM |
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marianne13
LIF Adolescent
Member since 6/10 887 total posts
Name:
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Re: renting out your house, while buying another
We have an investment property. We bought it as our primary residence and circumstances changed and after about a year, we rented it out.
So now we live in an apartment and we have an investment property. We are looking for our primary residence. I contacted my loan officer at the bank I got my original mortgage from and he didn't have a problem with pre-approving us for a loan. However, now I read online that banks don't want you to have 2 primary residences on their books? How would that work? Would they change the first house to investment property in their system? Would they treat the purchase of our primary residence as an "investment property"? Our loan has been sold so maybe it doesn't even matter at this point.
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| Posted 4/18/12 5:21 PM |
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