Would you be better off just selling the first house? What should you consider in deciding whether to sell the first house or rent it out if you are staring to think of moving to another house?If you rent one house for the monthly mortgage amount, how does that affect your ability to buy a second home?
It affects your debt to income ratio. Your lender will not assume 100% occupancy, 100% of rental income.
Depends on your other debts and your total income.
Depends on your credit rating.
Right now it is VERY difficult to sell a home.
Long distance renting can be a problem, fraught with problems.
You should try to rent it for MORE than your monthly mortgage payments if possible.
Go to a lender and get prequalified, or see if you can qualify.If you rent one house for the monthly mortgage amount, how does that affect your ability to buy a second home?
HEY!!! This is a good thing! If you are still able to rent the house for the same amount as your monthly mortgage then you are better off than a lot of people. Also, this allows you to qualify for a second house.
my friend has 1 house where her parents live and they rent out some of the rooms which pays for half of the mortgage there. she then found another house 2 hours away closer to work. She qualified to get this 2nd house because she is in effect doesnt owe the full amount of the first house, she only owed half because she can prove that she has renters there.
so as long as you have a source of income covering the monthly mortgage of the first house then you are fine.
ok here is the truth. Only 75% of the rent is counted and if you are renting for just the mtg payment then you will have the balance figured into your debt ratio that is why so many choose to sell rather than be landlords
I am a mortgage banker in TN %26amp; KY
There are some brand new changes in how FHA treats this situation and very likely all lenders will treat this situation. Get advice from your lender to see if this effects you.
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