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Possible to buy new primary residence and have existing home as rental?

Profile picture for LisaA1012
I'm in Texas and have home that curently is worth 175K.  I owe 152K.  I would like to purchase another home in a neighboring city and move, but I'd like to keep my old home as rental property. (The market in my city is great for rental income).  How would I go about doing this, and is it even possible?  What loan options do I have?  Do I have to go with a private lender?
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October 18 2011 - Beaumont
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Answers (2)

Profile picture for LUXURY HOME LOANS CA
Most lenders will require 30% equity in the departing residence to allow rental income to qualify. If you have sufficient income to cover both housing payments you may qualify. In addition to your 20% down payment you'll need 2 months PITI on the new property and 6 months on the departing property.

Happy funding, Rudi
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October 18 2011
Profile picture for Cecilia Koch
There are many variables to take into consideration.  I suggest that you speak with a lender and explore all of your options.  Your local lender or mortgage broker will be able to answer all of your finance questions.

Thank you for your question.

Cecilia
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October 18 2011
 

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Profile picture for Rudi Hofmann
QuestionPossible to buy new primary residence and have existing home as rental?
  • Latest answer by Rudi Hofmann
  • October 18 2011
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