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Answers (9)
Best Answer
- mymortgagebrokerjoe
- Contributions:129
i assume your rent on investment property is covering the mortgage payment? (i would still like to get a look at your schedule e though) so really the question is can u turn your primary into a rental and use the rental income to offset the mortgage payment? you can if your ltv on that property is 70% or less, you are putting 20% down on new home, and u have adequate cash reserves - 6 months for each property. you already meet the 2 year rental experience guideline. those are the guidelines from one of the lenders i work with and i think pretty much across the board. they are so stiff because they want to prevent a "buy and bail". if u cant meet those requirements, then u gotta qualify for both the new mtg payment and the payment on the house u live in now. i just closed a loan today where borrower was downsizing but qualified for both mtg payments, although he plans on selling the home he is moving out of.
- emmajacob
- Contributions:4
- Shawn Ryan Rosa, "sryan1980"
- Contributions:493
line up a renter for the condo and provide a copy of the signed lease to the bank when you apply for the mortgage on the new home
- mymortgagebrokerjoe
- Contributions:129
follow up. after reading fannie mae's guideline, u can get away with as little as 2 months reserves on both properties provided you have 30% equity on property being converted. also, the 20% on new home requirement may only be for the one lender i consulted with. each lender can have their own requirements in addition to fannie mae guidelines. these are know as overlays. hope this info helps.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
Your main challenge is you would have to qualify for the new purchase without the benefit of counting any projected rent income from the property you would be vacating (because it is upside down).
You mention the 3rd property would kill you, so this leads me to believe your debt to income ratio will not support the new purchase in the above circumstance.
One possibility to consider with 20% down would be to buy a 3rd property as an investment. In this circumstance you could count the projected rent on that property toward qualifying.
You could then look to move into that property, perhaps one year later. It wouldn't be an immediate solution for you, but could instead be an eventual one.
You mention the 3rd property would kill you, so this leads me to believe your debt to income ratio will not support the new purchase in the above circumstance.
One possibility to consider with 20% down would be to buy a 3rd property as an investment. In this circumstance you could count the projected rent on that property toward qualifying.
You could then look to move into that property, perhaps one year later. It wouldn't be an immediate solution for you, but could instead be an eventual one.
- Lost in Orlando
- Contributions:3
Joe-
62400 is my annual gross
No, I am not self-employed
No- I have not included any rental income.
- mymortgagebrokerjoe
- Contributions:129
is 62400 your gross income? are you self employed or all w-2 plus rental income. also, are you including rental income in the 62,400 number? you definitely need to talk to someone with a lot of experience in evaluating tax returns. once some one evaluates your complete situation, then your chances can be determined. if u are converting your primary residence into a rental, there are certain requirements that u must meet in order to use rental income. without knowing what your respective payments, there is no way to tell how good your chances are.
- Lost in Orlando
- Contributions:3
a. What equity do you have in the current residence and the rental.
Both the current home and rental property upside down due to market conditions.
b. How much down payment do you have?
I can put 20% down
c. How long has the house been rented?
Since 2006
d. Do you have sufficient income so you can pay the mortgages on all three properties? My income will allow me to pay the current two propreties, but not the 3rd and still have the ability to live,
Both the current home and rental property upside down due to market conditions.
b. How much down payment do you have?
I can put 20% down
c. How long has the house been rented?
Since 2006
d. Do you have sufficient income so you can pay the mortgages on all three properties? My income will allow me to pay the current two propreties, but not the 3rd and still have the ability to live,
- wetdawgs
- Contributions:26794
Some questions to ask yourself (because a lender will ask)
a. What equity do you have in the current residence and the rental.
b. How much down payment do you have?
c. How long has the house been rented?
d. Do you have sufficient income so you can pay the mortgages on all three properties?
a. What equity do you have in the current residence and the rental.
b. How much down payment do you have?
c. How long has the house been rented?
d. Do you have sufficient income so you can pay the mortgages on all three properties?
Can I qualify for another mortgage
I currently own a house that is rented and the condo I live in. I am interested in buying another property to use as a primary residence,I have an income of 62,400 and a credit score of 692(due to a mgt mod on the condo) What do you think my chances are of getting approved for a new mortgage?
Lost in Orlando
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