Profile picture for aaronbernat

can i rent my home out and buy another one?

conventional loan on current residence. 10% down on new home.
  • March 09 2012 - South Orange
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Answers (6)

Depending on your current mortgage payment/equity position, his is a great way to increase your net worth. Done properly, you will have a cashflowing asset which will hopefully be paid off by someone else (your renters).  If you don't mind moving every so often, this is a good way to build a solid rental portfolio and a nice, passive cashflow.  Speak with a compentent mortgage professional to see if this is something you can do. Good luck
  • June 26 2012
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You may be able to rent your home and buy another home.  You would want to check with a mortgage banker first to determine how much equity they would require you to have in your home.  The mortgage banker may also require that a lease on that home has been in place for a specific period of time in order to use the rental income towards qualify income when you purchase another home.
  • March 11 2012
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It sounds like you want to rent out your current primary residence and purchase a new primary residence.  This has always been allowed per fnma, freddie mac, va, and fha guidelines.  What has changed a few years back with this "mortgage crisis" is what these underwriters call "buy & bail" guidelines.  Essentially, if you need to include the rental income you will recieve to qualify for the new loan, you will need to meet certain equity levels in your current primary home. 

If the new loan is going to be conventional, you will need 30% equity, and FHA requires 25% equity.  VA does not have an equity position requirement of your current primary house.

We see this every day.  There are many other requirements to meet to be able to utilize this rental income.  Feel free to contact me to find out what is available for your scenario.  Best of luck!
  • March 11 2012
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I would speak to a Banker or mortgage broker in the first instance. You may need 20% depending on the equity you have in your existing property.
Good luck.
  • March 10 2012
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Profile picture for sunnyview
Many lenders I have spoken to want 20% down on investment property with reserves to cover PITI for each owned property unless the property is through HomePath.

I would call several local lenders or contact a lender in your area in the Zillow directory to see if they can tell you what the requirements might be in your situation.
  • March 10 2012
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This is a question for a banker.  With the right credit score and debt to income ratio a lot is possible
  • March 09 2012
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