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Do we need to have 12 months rental history from tennant in order to buy 2nd home that will become primary residence?

Posted on: 28th Jun, 2010 06:52 pm
We currently live in NC. In 12 months we are planning to move back to Michigan so that my daughter can go to college, we can be closer to family. I am an only child with a single parent (mom) and while my mom is not technically sick she is definitely a different person and needs me near her. We were told we would have to rent our current house for 12 mos in order to buy our primary residence in MI. Our goal was to get renter to sign a 24 month lease. It is June 2010 and we want to get the renter now and move to an apt here in nc while we wait for my daughter to graduate high school. But if we don't need the 12 month history we wouldn't bother moving now. So confused as to what to do. Pls help.
Hi helenkessler!

Welcome to forums!

As far as I can understand, you will have to provide the 12 months rental history in order to purchase a primary residence in Michigan. Unless you do so, the property in Michigan won't be considered as your primary property.

Feel free to ask if you've further queries.

Sussane
Posted on: 28th Jun, 2010 09:28 pm
That is simply not corrent Sussane.

Helen, the only reason you would need to show a history of the rental income is if you need that income to qualify for the new home. If your debt to income ratio is in line with guidelines you can absolutely buy a new home as a primary residence.
Posted on: 29th Jun, 2010 09:07 am
Thank u! I haven't figured out if we could afford a 2nd home based on our dti.but more than likely we won't be able to. We will be going down to 1 income when make the move.
Posted on: 29th Jun, 2010 09:15 am
Probably best to rent for a while then until you both get situated and employed again. Buying now is probably a bit risky in Michigan right now anyway.
Posted on: 29th Jun, 2010 09:25 am
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