Posted on: 14th Jun, 2010 07:35 am
We may need to rent our current home and buy another. We are getting transfered out of state and our home has been on the market for 6 months with no offers yet. Our questions: #1 - can we purchase another home if we rent this one. We have "gift" money for a downpayment. #2 - would a co-signer help.
We do not have equity in our current home, but could provide copies of the lease agreement, etc. Will have approx $30,000 for a downpayment on a price range of $250K for our new home.
We do not have equity in our current home, but could provide copies of the lease agreement, etc. Will have approx $30,000 for a downpayment on a price range of $250K for our new home.
Because you have no equity in the present property, mortgage guidelines will not allow you to use the rental income for qualifying.
You will have to have income that qualifies you to carry both mortgages without any rent. If you do not have enough income to do that, a coborrower could help.
The rental income will certainly help you pay for everything, but, just can not use it to qualify.
Will probably need at least six months reserves for that property, so, besides your down payment and closing costs, you will need money left in your hands for reserves to the tune of six months mortgage payments
You will have to have income that qualifies you to carry both mortgages without any rent. If you do not have enough income to do that, a coborrower could help.
The rental income will certainly help you pay for everything, but, just can not use it to qualify.
Will probably need at least six months reserves for that property, so, besides your down payment and closing costs, you will need money left in your hands for reserves to the tune of six months mortgage payments
