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Answers (7)
- Nancy Alert, "NancyAlert"
- Contributions:264
You can rent your home however if you do not have 20-30% in equity you will not be able to purchase another property unless you have approximately 30% down payment. Some banks may take 20% down payment but most of the want 30% if you have no equity in your current home. If you do not have equity in your home the bank will think you are buying and bailing (walking away from your home after you purchase). Contact your loan officer or contact me and I can provide you with names of a few lenders for you to speak with.
- goodinhouse123
- Contributions:51
YOU can rent the other house, and buy another one. .I know a couple here in my town.. bought a house and still oweing on their old one, renting in out.. if you can afford it.. .. It can be done..
- Robert Whitelaw, "RebelBroker"
- Contributions:71
Most likely, no. At least not as you describe.
As others have pointed out, you need to talk to a lender to get an idea of what you can afford to purchase. Talk to a few lenders. Don't just do the big banks. I like to suggest my clients talk to one big bank, one local bank and at least one broker/direct lender. I have a really good person you can talk to if you need a name.
Next, figure out where you are with the property you own. Can you rent it and break even - or even come close to breaking even? A good real estate agent who knows a good property manager in your area can get the info you need on likely rental scenarios.
Finally, in this situation, there is no way you are going to be able to buy with little or no money down. As mentioned before, 20% is going to be the minimum down payment that lenders will likely ask for. I just closed a deal in Santa Clara where to make the deal happen the buyer came up with 30% - and their credit and qualifications would most likely be categorized as impeccable.
Good Luck,
Robert
As others have pointed out, you need to talk to a lender to get an idea of what you can afford to purchase. Talk to a few lenders. Don't just do the big banks. I like to suggest my clients talk to one big bank, one local bank and at least one broker/direct lender. I have a really good person you can talk to if you need a name.
Next, figure out where you are with the property you own. Can you rent it and break even - or even come close to breaking even? A good real estate agent who knows a good property manager in your area can get the info you need on likely rental scenarios.
Finally, in this situation, there is no way you are going to be able to buy with little or no money down. As mentioned before, 20% is going to be the minimum down payment that lenders will likely ask for. I just closed a deal in Santa Clara where to make the deal happen the buyer came up with 30% - and their credit and qualifications would most likely be categorized as impeccable.
Good Luck,
Robert
- Andrea Wince, "Diamond Investment R"
- Contributions:108
It is best to sit down with a lender to determine your financial capability. You might qualify for FHA (owner occupied) with about 3.5% down payment plus closing costs. It is likely you will also need to show enough income to cover both mortgages.
- Mya Berlyant, "MyaBerlyant"
- Contributions:260
If you have a great paying long term job, great credit score, no other debt (or a great debt to income ratio) and can convince the lender that you're not going to walk away from your first upside down property as soon as you get a loan on the second one - you might have a fighting chance.
I strongly encourage you to contact an experienced lender and lay all the cards on the table so that they can give you the best advice. It's really difficult, but DOES happen now and then.
I strongly encourage you to contact an experienced lender and lay all the cards on the table so that they can give you the best advice. It's really difficult, but DOES happen now and then.
- Ronald Escobar, "Ron Escobar"
- Contributions:305
It really depends on your income... if your income is documented sufficient enough to pay for both properties, then you should be OK... the lender will not likely consider your new rental income in the equation, because your house is upside down...
- wetdawgs
- Contributions:26833
If you are upside down you will need a substantial down payment (say at least 20%) and considerable reserves, as well as the income (not counting rent) to cover both mortgages.
Lenders are very hesitant in the circumstances you describe because they are concerned about "buy and bail".
Lenders are very hesitant in the circumstances you describe because they are concerned about "buy and bail".
I am upside down on my home can i rent it and buy another home with little or no money?
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