Posted on: 28th Jun, 2010 08:25 am
I all ready have a home loan and I am current and in good standing. However, I have been renting my home out for the past 2 years. Since the market has not been doing well in our area I thought this was better than putting it up on the market and losing money on it. However, now my boyfriend and I are looking to purchase a home. Do I have to sell my home first or can I get another home loan since my home is used as a rental property?
You can buy another home as your primary residence as long as you qualify. 75% of the rental income on the other property can be be used towards your income to qualify for the new property as long as you have reported the rental income on your tax returns.
If you haven't reported your rental income, you can still purchase a new home but, you would have to qualify carrying both mortgages.
Above comments are correct.
If your rental home has an FHA mortgage on it and you need an FHA mortgage for the next purchase, there may be some special, additional requirements you will need to meet.
If the mortgage on your rental is not an FHA mortgage, you should be ok per the above comments.
If your rental home has an FHA mortgage on it and you need an FHA mortgage for the next purchase, there may be some special, additional requirements you will need to meet.
If the mortgage on your rental is not an FHA mortgage, you should be ok per the above comments.
