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Casey Anderson's Blog

By Casey Anderson | Agent in Woodbury, MN

How To Rent Out Your St. Paul Home


What To Do When Your Upside Down

Many St. Paul home sellers are challenged with the problem of being "upside-down" on their mortgages. The fact is that in order for you to sell your house in the MN real estate market today you need to pay off your mortgage in order to convey clean title to your buyer. Unless you want to arrange a "short sale" with your mortgage lender, this means you will bring money to the closing table to pay off the remaining balance owed. Many home sellers who need to move now are considering the possibility of renting out their current home in order to buy a new one.

The good news today is that with the tougher housing market, the amount you can get for rent has increased significantly. Renters find that they are competing with each other to rent out your home as their is a real shortage of rentals available today. Many home sellers are finding that they can more than cover the expenses for retaining the home with these increased rents.

The goal, of course, is to rent the old home out long enough to allow the St. Paul real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.

Will Rental Income Help Me Qualify?

Lenders have guidelines for the St. Paul sellers who will rent out their home to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.

Will I qualify for a new mortgage?

Once we have a chance to meet to discuss the value of your current home it is important that you go through the process of getting prequalified for a home loan. Your mortgage broker can help you decide which of the options are best whether renting or selling your current house. The process of getting preapproved is is usually free and contains no loan obligation. A good mortgage banker will be able to analyze all of the options available to you such as MN FHA loans, Conventional, VA, or other types of mortgage loans.

City of St. Paul Information

As both the capitol of Minnesota and the county seat of Ramsey County living in the city of Saint Paul is filled with things to do. Popular attractions such as the Xcel Energy Center, the Science Museum of Minnesota, and Ordway Center for the Performing Arts make St. Paul a popular destination for both its residents as well as those living in surrounding suburbs. Employment opportunities abound in St. Paul with major employers such as Ecolab, Lawson Software, Gander Mountain, and nearby 3M. St. Paul housing can be especially affordable for first time home buyers through the Ramsey County's First Home program. Residents enjoy popular regional events such as the Minnesota State Fair and the St. Paul Winter Carnival. If you thinking of buying or selling a home in St. Paul please send me and email or give me a call as I'd love to help you accomplish your goal.

If you would like to discuss the reality of renting out your current home, please email me for more information.

Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.

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