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Answers (5)
Best Answer
- Randy Hooker, "GoingForIt"
- Contributions:395
If you're financing your second home purchase, you'll have to be able to qualify on debt to income ratios for BOTH mortgage loans. But as already suggested, you need to consult with an experienced, reputable mortgage lender. Let me know if you want or need a reference.
- Jeff Masich, "Arizona Homes Land"
- Contributions:508
Dear Love:
Good question. More information is needed to answer your quesiton. Talk to your Realtor and Lender about the equity in your current home, how much down payment you have, your debt levels, cash flow expected on your current home, the price of your new home, your credit score etc.
This is a good time to make this move if you have the cash or can qualify for a loan. Especially if you cash flow is positive on the rental of your existing home.
Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart
Good question. More information is needed to answer your quesiton. Talk to your Realtor and Lender about the equity in your current home, how much down payment you have, your debt levels, cash flow expected on your current home, the price of your new home, your credit score etc.
This is a good time to make this move if you have the cash or can qualify for a loan. Especially if you cash flow is positive on the rental of your existing home.
Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart
- Neil Najibi, "hard hat agent"
- Contributions:23
It is a great time to do that. It all boils down to income, expenses and ratios.
Talk to a qualified lender/loan agent.
Talk to a qualified lender/loan agent.
- Erik Johnson, "UpNorthAgent"
- Contributions:9
Talk with your Banker or Lender first..If you have equity in your home and have owned it for 2 years.. you may want to sell and take the tax free gain if married $500K not married. $250K.. and then go out shopping again for investment property. You should consult your Tax advisor also..prior to converting your home into a rental. If it because the market is soft and you want to hang on for a few years certainly that is the reason many are considering renting. Get some good tax advise before hand it will be money well spent. Good Luck..everyone should own at least one rental property. Good Invesment and keeps you humble.. :)
- Andy Zepeda, "RE Investments"
- Contributions:26
This is very common. Discuss with your lender your desire to keep you current home as a rental.
Depending on the type of loan that you are going to get for your new home and how much equity you have in your current home you may or may not be credited with the rental income of your current home.
Generally speaking if you are going to buy your next home with an FHA loan you need 25% equity in your current home to be credited with a portion of the rental income.
If you are buying your next home with a Conventional loan you need 30% equity in your current home to be credited with a portion of the rental income.
Depending on the type of loan that you are going to get for your new home and how much equity you have in your current home you may or may not be credited with the rental income of your current home.
Generally speaking if you are going to buy your next home with an FHA loan you need 25% equity in your current home to be credited with a portion of the rental income.
If you are buying your next home with a Conventional loan you need 30% equity in your current home to be credited with a portion of the rental income.
How do I purchase a home and keep my old home as a rental?
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