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Any way I can convert my primary residence into a rental and qualify for new primary residence mort?

I currently own and live in a small condo unit in Boston. I have about 23% equity at this point. I bought in 2009 and I am approaching the 3 year requirement from the $8000 tax rebate. I want to purchase a larger unit as I have quickly outgrown this one. I want to keep this unit as a rental as it is centrally located to colleges / great rental opportunities. Is there any way to qualify for a new mortgage without factoring the old unit in to my front end ratio? (assuming there is a signed lease, etc).



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June 12 2012 - Boston
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Yes, you can do that as long as there is 30% equity in your current primary. With that equity you will be able to use the rent to qualify for the new primary home loan. Hope this helps. Thanks,
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January 09
Hi Bill,

I recently did this myself, first hand. My primary business is selling luxury homes and investment properties, then managing those investment properties for the investors. My secondary business is building my own portfolio of income properties. I recently did an 75% LTV (I was offered 80) cash out refi then purchased another home as a new primary residence at. I also helped a friend do the exact same thing except he is at 50% LTV and had just opened his own business. Depending on your income you may need to put a lease in place on the old home prior to closing, and you may need to submit to an inspection of the old home as part of the new loan commitment, but it can be done and I would be happy to help you through the process and keep your income property occupied and profitable for years to come.
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December 12 2013
Depending on what purchase loan program you apply for, you will need an appraisal on your existing property to confirm 25% to 30% equity in order to allow you to count any potential rent to help offset the existing payment. 23% will not be enough but perhaps you can pay down some principal if the numbers are close.
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June 13 2012
Contact me off line to discuss,  Yes you may qualifiy to buy a new primary residence,  There are requirements you need to meet in equity and lease.  Once those two factors are met, then it comes down to an underwriter's judgement.


Best,

Eric
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June 13 2012
 
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