- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (5)
- kef harvey, "mrharveycrl"
- Contributions:9
The only feasible solution for you may be to get the rate reduced first. This will lower your monthly payment . you now can can possibly cut your monthly payment by hundreds of dollars. then you may qualify to purchase and carry the current debt less the rental income .
- Russell Smith, "RussellMortgage"
- Contributions:110
For FHA you would need to have reported that rental income on your tax returns to be able to use it when you don't have 30% equity. So the rental contract would not work unless possibly you are having to purchase another home because of a job relocation outside of a reasonable commute from the current home. An idea to check into is having your husband qualify either by himself or with a non-occupying coborrower on an FHA mortgage. He would have to prove he is not on the deed and mortgage to your current home. A loan officer should always see if you qualify having both mortgages without including rental income. Maybe a conventional loan at 95% could be an option. You have good questions as this is a popular situation these days and these items I have mentioned may bring up other questions or scenarios. Hopefully you have been able to speak with a mortgage lender that was able to qualify you by now so you can purchase. Just keep in mind to be able to afford both mortgages in your budget in case the renter doesn't pay. If you absolutely need the rental income to pay your bills, consider waiting.
- riburn3
- Contributions:11
I'm in a similar situation where I am going to buy a new home with my wife and rent out my current home (although I am not under in my loan).
Although I currently don't have a renter lined up, with our combined incomes, we qualified for the new mortgage without difficulty because both mortgages combined were well below what our maximum house payment we were pre-approved for was.
That said, when we first started the process, our mortgage broker told us that should financing the second home be an issue because of the first mortgage, she told us as long as we could line up a one year lease for our property, it would likely be sufficient enough for the underwriters.
Although I currently don't have a renter lined up, with our combined incomes, we qualified for the new mortgage without difficulty because both mortgages combined were well below what our maximum house payment we were pre-approved for was.
That said, when we first started the process, our mortgage broker told us that should financing the second home be an issue because of the first mortgage, she told us as long as we could line up a one year lease for our property, it would likely be sufficient enough for the underwriters.
In other words, John says... "I won't answer your question or provide any info... but I want to make a commission if you buy..."
- John Siddons, "siddonsj"
- Contributions:18
[self promotion deleted by ZIllow moderator. Please read our Good Neighbor Policy for posting guidelines]
Suggestions on qualifying for a second mortgage with our first mortgage being a rental property?
I have read a hundred different answers to this question on Zillow so someone please confirm! I currently owe more on my home than it is worth, FHA mortgage. I do not have 30% equity in my home. Having been recently married, my husband is not on the mortgage. We are considering renting out my home and purchasing a new home together. How can we do this and take advantage of both of our incomes in qualifying for a new mortgage? We have potential renters lined up for a 2 year lease who will cover my current mortgage. Are there any lenders out there that won't require proof of rental income on your tax return (we don't want to wait 12 months) and just require proof of a 24 month rental contract? Would me being a co-signer on a mortgage in my husband's name help us qualify for my house? Any advice/suggestions/answers would be appreciated! Thank you for your time!
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.