I owe one house already which I have rented out for 6 months while ive lived at my g/fs which she rents....now we want to move and buy a house without selling my first house as i like the rental investment...Does the rental income from my first house help me qualify for my second mortgage?? My g/f is a student and I dont expect much help qualifing for a mortgage from her .....is there much chance of getting another mortgage with not alot of money down and not a huge income???
2007-01-28 11:38:39 · 12 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes as long as your credit is good, and the next house will be your primary dwelling you shouldn't have any trouble buying. My husband and I were in the same boat where we had to relocate and rented our property, then we decided to buy in our new location.. In the second location we did 5% down, 15% HELOC, and 80% conventional. You can go as low as 3% but the more you can put down the better. Just keep in mind a Home equity line has fluctuating interest rates, and your minimum payment only covers interest. Good luck!
2007-01-28 11:42:52 · answer #1 · answered by cynical jade 4 · 0⤊ 0⤋
Yes you can. Your home that you are looking to buy will be consider your primary home and the other property will be considered an investment property and you can usually use 75% of the rent as income on the new home so that would help on your debt to income. There has to be a lease agreement though to do that though. As long as your credit is in pretty decent shape, there should be no lates on the current mortgage, your debt to income is at a good percent and you have a steady income for the last two years. If you can proof all this you should have no problem. Also remember the more money you can put down the better program you'll qualify for. I do loans like this every month. Good luck and if you have any other questions feel free to email me.
2007-01-28 11:57:35 · answer #2 · answered by Anthony P 2 · 0⤊ 0⤋
Generally, banks or other lending institutions count only 75% of the rent towards income. So, depending on how much rent you get over your mortgage payment, you could be either helped or hurt.
For example, if your mortgage payment is $650 @ month and you charge $1,000 @ month rent they will count $100 as income.
But if your mortgage payment is $900, they are going to count $150 as debt.
This could effect your interest rate, but housing is still a great investment.
But if you are thinking about selling in the near future, keep in mind that you can keep up to $500,000 profit if you lived in the house at least 2 out of the last 5 years.
Hope that helps
2007-01-28 12:02:59 · answer #3 · answered by ga_rei_guy 3 · 1⤊ 0⤋
You may be able to do so buy one if the equity in you current owned house is big enough to be considered as a down payment. And that the rental income will pay that mortgage and taxes on that place. If you have extra income from your rental property and the income you earn from a job to pay the new mortgage you should be able to purchase another home.
2007-01-28 11:50:21 · answer #4 · answered by Aliz 6 · 0⤊ 0⤋
Yes you can. Just take into consideration of the bad days when you have to pay for both the properties. Just dont go to the lender you loaned you for the house, cause if they know that you have made your first house as an investment proeprty they may increase the mortgage rate on you.
2007-01-28 11:52:34 · answer #5 · answered by pkunal 2 · 0⤊ 0⤋
Most likely not, unless the house is free and clear and all the rent is income.
Lenders have to assume not only the debt against the rental house and the new house but vacancy and expenses on the rental house.
2007-01-28 11:42:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
2 things. 1. Any steady income helps with qualifying for loans.
2. Unless you put the second home soley in your name, you are an idiot. After you two break up, the debt and equity are divided, and if you can't qualify to refinance, (at about $1500) she can force you to sell the home.
2007-01-28 11:44:19 · answer #7 · answered by theangel1025 2 · 1⤊ 0⤋
Everything depends on your purchase cost. Try to get a solid house that needs TLC at the lowest possible cost. Hopefully the seller is motivated. Could be you have another income opportunity eventually here.
Go for it!
2007-01-28 11:43:11 · answer #8 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
Yes, however you will need to find out how much equity that you have in your rental home first. Hopefully, it is at least 80% loan to value. This is assist you when purchasing your new home.
2007-01-28 11:49:11 · answer #9 · answered by Wendy H 2 · 0⤊ 0⤋
This is a pretty serious question, and if you want to get soem reliable answers I'd ask this elsewhere.
2007-01-28 11:41:51 · answer #10 · answered by J.Z. 1 · 1⤊ 0⤋