Question


Club_ob...

Buying a second home, do's and dont's?

My wife and I are considering buying and moving to a second home and renting our current property. Regarding the mortgage, is there anything I should or should not tell the potential lender regarding this plan? Our belief is that our current home - if rented - will provide enough cash for at least the first mortgage and up to 1/2 of the second mortgage. I assume the bank could care les about that (and I dont blame them given the issue of the rental property sitting empty for a period of time). Any other suggestions would be helpful, we're considering moving to a home that is closer to the elementary school our son will attend (the current drive is almost 20miles 1-way, after moving it would be about 1/2 a mile away).

2 years ago - 3 answers

Best Answer

Chosen by Asker

I have been considering the same thing and by renting out my 1st home it would cover both mortgages except for $200. My real estate agent said that the bank/mortgage company will definitely consider your first home's rent payment as income and could indeed help you acquire a second home easier. There are alot of downfalls in renting out your first home and being a "landlord" though. Repairs and upkeep on one home is hard much less having to do them for two. Some renters don't care if they destroy rent houses. And then you also have to consider that if you do keep your first property, depending on how much you still owe, there is equity in it and could provide a cushion if you were to run into financial problems later, you could always sell the first one. If I were you I would get advice from my real estate agent.

by PPRG

2 years ago

Asker's Rating: 

Other Answers

With good credit and minimum of 5% down, this sounds like a easy deal for me as long as the debt to income ratios work Leo Namiot www ... Lending in all 50 states

by LeoLends.com- 2 years ago