Profile picture for loosey1981

Planning on Moving and Renting our current home

Right now my wife and I each own a home we bought before we were married.  We have been renting my wife's house out for the last three years and have been reporting the income on tax returns.  We would like to move out of my house (the house we currently live in) and buy a new home in an area we like a lot now that rates are so low.  My question is even though we own two homes already, will we be able to qualify for a sizable loan on a house we would like to purchase?  We plan on renting out my house (I would be able to rent it out for about $600-$700 more than my mortgage payment.  My wife and I both make a pretty good salary as well and have nearly perfect credit.  What steps do we need to take to make this a reality?
  • October 18 2011 - Eagan
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Answers (9)

Profile picture for COREXRE
11/28/11

As suggested by others, find yourself a good, reputable mortgate broker and lay out your situation to them.  Let them review you circumstances and offer up a few options (if its possible).  It does not hurt to go to 2 or 3 independent mortgage brokers for advise / suggestions.  And before you go ...... have all the necessary facts available to present with respect to your income, credit, debt load, etc, etc.

Best success .................
  • November 28 2011
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Your first step is to talk to a lender. I can tell you that as long as you qualify, it's possible. We have 3 different houses mortgaged (you usually get cut off around 4).
  • November 17 2011
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Find someone to lease the home in mind, and have the lease available for your mortgage professional as an additional source of income.

Is the home you want to move out of in Eagan?  Close to Blackhawk school?

Email me, I have someone looking in that area.
  • November 17 2011
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As long as the home you buy is superior to the one you currently occupy, the underwriter should not question the truth of your claim to owner occupy the new home, which is their first main concern.  But the rental income on the home you currently occupy will only be allowable if we can demonstrate through a recent appraisal that you hold a  30% equity stake In that home, and you have to prove you have 6 months of mortgage payments left in cash reserve after closing.  if you owe more than 70% of its value now, we can still do the loan but you have to qualify without the benefit of rental income on that property.  We can use your wife's net cash flow from the tax returns on her property so if you both make fairly good income its just a matter of doing the math to calculate if you can carry your mortgage payment as a straight debt in qualifying for the new home.

  • October 21 2011
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It all starts with a loan application.

Happy funding, Rudi
  • October 19 2011
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As you notice we are not able to post phone numbers or anything like that, but the gist is that you need to speak with a good loan officer first. If you would like just click my icon and contact me directly through my profile.

From there you will know the options. There is no point in expanding any further, because the financial situation will dictate the best route to achieve your goals.
  • October 19 2011
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Next step is to talk to a mortgage professional, but in most cases, if your combined incomes limit your ability to qualify for a third mortgage payment, lenders can accept your current rent on one house as income and even anticipated rent on the other house as income, though they typically only count 75% of the rent as income, to take into account potential vacancies.
  • October 18 2011
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Give this person a call, [phone and hotlink removed by Zillow moderator]
  • October 18 2011
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It sounds like you have a well thought out plan on what you'd like to accomplish. Talking with a mortgage loan officer would be a good starting point for you and your wife. The loan officer will be able to "qualify" you  as to the amount of a mortgage you will be able to secure, and once you have that information you should be able to start your house hunting! If you don't have a loan officer I would be happy to recommend one or two excellent lenders to you. Emmy Byrne RE/MAX [phone removed by Zillow moderator]
  • October 18 2011
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