Profile picture for drjc2512

Underwater on townhouse, want to rent out and buy a new bigger home. Do you think we will qualify?

Current town home we owe 148000.
Current monthly debt including mortgage is 1600.
Income 9000 gross per month.
Would like to rent out place and buy another in the range of 250000-300000. We bought the townhouse and had no kids and now we are about to have a 2nd kid and  We need a bigger place. That is the reason to move.
Both credit scores above 750.
Willing to put down 10% down payment.
  • January 20 2012 - Palatine
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Answers (4)

Profile picture for K.K. Yan
Your situation is very similar to one of my clients. The lender didn't take into account their potential rental income.  Usually take at least 2 years of rental history before a lender consider protion of it. However,  they did get a loan though without the help of the rental. You should be able to get a loan as well base on your description. The amount of loan will depends on the new house you want to buy, property tax and other expenses.  You may want to get your financial statement ready and talk to some of the mortgage agents.  This may get your answer quicker. 
  • January 21 2012
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It is much more difficult to get a mortgage now than 5-6 years ago so you need to speak with a few of them and see what they say. There is no cost to you fo just talking. My web site has a few references.
  • January 21 2012
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Profile picture for Sharon Lewis
Without knowing your complete financial picture, its difficult to say yes or no.And please don' t post it here, these are public forums. 
There are some wonderful lenders here on Zillow, pull down the professionals tab up top to search for one or ask your Realtor, they should have several 'tried and true' lenders who have done great work for their clients. Best of luck to you and congratulations on your impending arrival......boy or girl?
  • January 21 2012
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Go for it. Be confident when you visit with your lender. The best of luck.
  • January 20 2012
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