Answers (13)
- James Riley, "Jim Riley"
- Contributions:3
You will have to qualify for both mortgages but rent of the home in Texas may be used if you have a 25% equity postion established by a recent appraisal. You will need a 1 year lease and proof that you are receiving the rent. Your credit score should be over 680 and cash reserves are imperative.
- Rosana Shekman, Broker ABR, "Rosana Shekman Owner"
- Contributions:847
Yes,this is true.
Rosana Shekman
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Rosana Shekman
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- Craig Loeffler, "ahomeloan4me"
- Contributions:2
The one thing I saw that was overlooked..In your question, do you consider a "second home" as a vacation type of home in a different city? Or do you consider a "second home" as just buying another house? If you are currently renting, and you rent out the other home you own, and wish to purchase a priciple residence to live in...the yes, it is doable as a "primary residence" purchased as a second home.
- Tiffinee Caves, "tiffineecaves"
- Contributions:9
In the state of Texas you are only allowed one FHA loan at a time. So conventional would probably be your best route. But always shop around with loan officers and see which one offers the best program for you.
If you need some names of a few, I would love to give those to you.
Tiffinee Caves
If you need some names of a few, I would love to give those to you.
Tiffinee Caves
- Coleen Donovan, "Plano Real Estate"
- Contributions:163
Has your rental income been disclosed on your tax returns for the past 2 years? If so, you should be in good shape. If not, the cost of your current mortgage for the rental house gets factored into your debt to income ratios.
- Jack Stapleton, "JackStapleton"
- Contributions:1002
Yes. It is true. You can no longer use rental income as part of your debt to income ratio. But, this depends on what type of loan you are getting. Are you going for an FHA with 3.5% down or a conventional loan with 20% down. Call your local branch office of the institute you bank with and ask them for a pre qualification letter. Then call a mortgage lender in your area and ask them for a same. What you are looking for is a good faith estimate for around the purchase price of a home you would be interested in, and a pre qualification letter. A seasoned lender can get you this information over the phone in ten minutes.
- openup
- Contributions:104
If you have and can document the income to support the additional debt and have a history of above average credit. It probably wont be a problem.
You will have to use the 2nd home as your primary residence.
You will have to use the 2nd home as your primary residence.
- Don Groff, "Austin Texas Realtor"
- Contributions:357
Lenders today will want to know how long you have been a landlord. Depending on the time frame they may or may not allow you to use the rental income. I am also a mortgage broker and I have various lenders that have different risk levels.
If you have strong credit and good income it should not be a problem but you need to speak with a lender first and review your situation so as to get pre-qualified with a full lender submission before you start looking to purchase the second home. Do not let a lender or broker "approve" you just by pulling your credit and saying everything looks good. Make sure the loan goes through underwriting and that the lender knows everything about the transaction. You can do this without having a property.
Once you have an underwriting approval you should be fine but make sure you receive the underwriting approval before moving forward for your protection.
If you have strong credit and good income it should not be a problem but you need to speak with a lender first and review your situation so as to get pre-qualified with a full lender submission before you start looking to purchase the second home. Do not let a lender or broker "approve" you just by pulling your credit and saying everything looks good. Make sure the loan goes through underwriting and that the lender knows everything about the transaction. You can do this without having a property.
Once you have an underwriting approval you should be fine but make sure you receive the underwriting approval before moving forward for your protection.
- wayne lancaster, "funds2"
- Contributions:1878
Not necessarily..... it depends on a lot of factors including credit score, how long you have owned the rental property, rent vs payment on rental house, reserves, etc. Find a local lender to go over details and get pre approved.
- Sandy Thacker, "CBC National_Bank"
- Contributions:61
The short answer is yes. You will need sufficient income and reserves in order to qualify.
Everyone's scenario is unique. In order to determine the specifics, a lender will need to understand all of the details of your scenario.
Everyone's scenario is unique. In order to determine the specifics, a lender will need to understand all of the details of your scenario.
- Naima Sumner, "Dallas Ft. Worth PRO"
- Contributions:3086
You do indeed need to speak to a lender. You have to take into consideration vacancy possibilities as well. If that happens, will you be able to pay the mortgage on both homes for a month or 2? A lender will look at your debt to income ratio among many other things to take into a consideration giving you more credit.
Naima
Naima
- Pat O'Reilly, "patohomes"
- Contributions:170
I would contact a good lender and see what you qualify for. I have several contacts, just let me know if you want them...
- wetdawgs
- Contributions:39623
Yes, until you have a history of rental income and substantial equity in the leased home.
I live in dallas,tx If I currently have a home which I leased out, how hard is it to buy a 2nd home
I've been told that you have to qualify for both mortgages..is this true??
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