2 mortgages?

Question

how hard is it to get a second mortgage and keep your current home to rent out?

Answer 1

2nd mortgage is taking equity out of your house. If you have equity in your house and a steady job, easy. If you don't have equity and a job, you aren't going to get one.

Answer 2

I think you mean purchasing a 2nd property and keeping you current as a rental. In order to do this you'll need to be able to show the lender that you have the income and assets to pay for both mortgages at the same time while maintaining a low debt ratio. This is because although you plan to rent the 1st property, the lender has no idea how long it will take for you to rent it out and how long it will be rented. Also keep in consideration that even if you already have a renter and lease signed the lender will only use about 70% of the rent in their calculation since they figure it will not always be rented 100% of the time. Plus you have to be able to pay taxes and insurance on both properties. It's definitely possible you just need to have enough income to support it.

Answer 3

It depends on the equity in the home, your credit rating, and your ability to repay the loan.

If you have a house with a current mortgage of 100k, and it's appraised at 200k, and will probably rent for 2k per month, and your credit score is 750, you'll have no problem.

If the current mortgage is 200k, and the house is worth 200k, and your credit score is 500 and don't have a job, it will be impossible.

Answer 4

It depends on the equity in the home, your credit rating...and you need talk hard.
I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing )
http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html
Good luck!

Answer 5

Yes, but you must either have had landlord experience that you can document or qualify be able to make the full Principal, interest, taxes and insurance payment on both hmes.