Posted on: 05th Aug, 2010 11:48 am
My fiance and I are thinking about buying a new home, however we both own a condo each. We are not able to sell, becuase of the hosing market, and what they are worth. Is it still possible to qualify for a home loan if we have our condos as rental property? And if so is it harder to qualify?
Yes it is possible however you will both have to qualify for the new payment as well as your payments on the condos since they have insufficient equity.
Do you and your fiance have high incomes to offset the payments?
Do you and your fiance have high incomes to offset the payments?
The rental income from the condos can only be used to offset the mortgages on those condos if the loan to value is 70% or less.
From what you say, it sounds like the value of the condos is not high enough above the existing mortgage balances. In that case, can not use the rental income.
Could rent them for a year and then use the rental income, but you would have to rent someplace yoiurself and buy after having documented rent income for 12 months or longer.
Right now everything would be included in your debt ratios.
From what you say, it sounds like the value of the condos is not high enough above the existing mortgage balances. In that case, can not use the rental income.
Could rent them for a year and then use the rental income, but you would have to rent someplace yoiurself and buy after having documented rent income for 12 months or longer.
Right now everything would be included in your debt ratios.
