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Mortgage qualify

I need a advice from mortgage experts about buying new 2nd home. Currently We own a Condo In Long Beach, CA which has total pmt $1700(Mortgage+Tax+HOA) per month and loan amount to pay  as of today is 140K.Currently, similar Condo are selling for 260-269k.  I have car payment of 250 per month. That's all debt we  have. Our combined Income is 150k per year. Due to schooling better option, I have decided to move and buy new home through renting current home. My questions are 
1)  If my rent income can be considered towards my total gross for my new mortgage application ? I would be renting at same time as I move to new home
2)How much will I be qualified with 20% down?

Thanks in Advance.
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May 18 - Long Beach
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Answers (6)

All great answers below! I would suggest you stop guessing and sit with a Loan Officer who can give you a realistic picture of what steps you need to take next. The reality is a loan application coupled with evidence of all the numbers you provided will give you solid numbers to begin your home watch properly. Any Realtor will want the same pre- approval letter to help you properly.
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July 18
It appears based on the information you have provided that you should be able to purchase another property. However, there are some missing pieces to the above scenario - cost of HOA & Property Taxes for the current residence as well as the total amount of available funds you have to equate to a 20% down payment. Use of rental income when you are converting your current primary residence to a rental property, 30% equity has to be verified, and you can then use 75% of the lease amount or verified market rent for the property and area. You also may need to provide a copy of the signed lease agreement as well as verification of receipt of the Security Deposit as well as have 2 months of Mortgage, Property Taxes, Insuranc & HOA for both properties in reserves remaining after your down payment & closing costs, just so you are prepared. You should contact a Mortgage Professional and get a free full analysis of exactly what you qualify for and/or are looking to spend based on all of the necessary information. Wishing you all the best!
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May 19
Yes, since you have sufficient equity in the condo you can use expected rent toward qualifying, The likely calculation will be 75% of the lesser of your lease agreement or appraiser/other source indication of fair market rent will be used to offset the existing expense. With 150k income and 20% down I'd expect you will be able to qualify for a loan that fits your desired target price range! but it would be difficult to make th calculation here without a full reivew of income documentation and liabilities.
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May 18
Thanks for the post. With a rate of 4.5% and $100K initial investment and an estimated taxes at 1.5% you could qualify for $606,000.00 and retain the current residence. After 6 months of rental receipt that amount will go up to approximately $875,000.00 with the condo renting out for $2,000.00 and you netting an additional $500 mth. I home this will help you. I can be reach via my profile for additional FREE consultation.
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May 18
You've provided most of the information needed to provide a preliminary purchase amount although it would be very helpful to know what those condo units are renting for in your project.
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May 18
1)  different programs / lenders  have different guidelines exist regarding  renting  home you are moving from ......in general  with as much equity you describe - you will likely be able to use rental income to help offset mortgage payment   ( an appraisal may be needed on condo ....6 months payment resreves likely needed for both properties ,  renter needed to be in place , )

2) in order to know what you can qualify for - get the pre approval process  underway ...this will help answer all your questions
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May 18
 
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