Posted on: 04th Jun, 2010 09:06 am
Hi,
I have a mortgage on my home, and have moved in with my fiance and rented it out. We want to buy another home, and I know that the original mortgage in my name will effect by debt ratio, but will the new mortgage company take into consideration that that old mortgage is being paid by the rental income. How does this effect my ability to buy a new home if I do not want to sell the old home, but just rent it?
I have a mortgage on my home, and have moved in with my fiance and rented it out. We want to buy another home, and I know that the original mortgage in my name will effect by debt ratio, but will the new mortgage company take into consideration that that old mortgage is being paid by the rental income. How does this effect my ability to buy a new home if I do not want to sell the old home, but just rent it?
Hi stephens,
As you already have a mortgage on a property, it will be difficult for you to qualify for a new mortgage to buy another property. Unless you have an excellent credit, income and debt to income ratio, lenders will not be ready to give you a loan. Nevertheless, I would suggest you to contact the local lenders and check out if they can help you in this matter.
Thanks
As you already have a mortgage on a property, it will be difficult for you to qualify for a new mortgage to buy another property. Unless you have an excellent credit, income and debt to income ratio, lenders will not be ready to give you a loan. Nevertheless, I would suggest you to contact the local lenders and check out if they can help you in this matter.
Thanks