If you want to get the best interest rate and avoid any loan fraud issues you would have to move into and live in the home for at least a year as you have mentioned. To qualify you would initially have to have income that would support both mortgages but as long as your credit and debt ratio's are in line you would be able to accomplish your objective.
I am a mortgage broker and Realtor so if you would like to discuss either aspect of the transaction you are considering please do give me a call or email me any additional questions you may have.
Best of luck to you.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
firstname.lastname@example.org | http://www.AustinListed.com
Also, if it does work out where you can qualify, which I believe you would, I would be happy to help you find just the right second property to purchase. I represent buyers like you at no cost to you, and am one of the top rated agents in Austin.
Thanks, Joe Jarusinsky, Keller Williams Realty, 512-261-4415
Moving to a new primary residence in the same area and price range as your current home, while turning the first one into a rental has also become more difficult.
"When a primary residence has been converted to an investment property
We will use 75% of gross rental income as stated on the lease as evidence of rental income or to offset the payment when the property is not listed on the Schedule E because it was converted subsequent to filing the tax return if the following conditions are met:
â€¢ There must be documented equity of at least 30% in the existing property from at least a 2055 exterior-only inspection, dated no more than 60 days from the Note Date.
â€¢ The rental income must be documented with a copy of the fully executed lease agreement and
â€¢ This method of calculating income is not allowable for Freddie Mac transactions unless the
borrower has a 2 year history of rental income."
In other words, times have changed, and it isn't as easy to just provide a lease agreement and go on down the road.
I definitely suggest you confer with a seasoned, licensed mortgage loan officer. He/she should know the rules.
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
Owner occupy is definitely going to provide you the best terms. Having said that, there are second home/investment property loans available.
Please feel free to contact me, and I would be happy to do rental analysis and price analysis on any home. Plus, I would be happy to refer you to some great lenders with great rates.
Please feel free to contact me anytime.