For Rent in Riverdale>Question Details

Fredrena, Home Owner in Calumet Park, IL

Can I rent my home for $2,000 a month to a private family...I need to see a profit each month in order to pay for another place to live.Cal Park area

Asked by Fredrena, Calumet Park, IL Mon Jan 31, 2011

Help the community by answering this question:


John Walin’s answer
Assuming you need a mortgage to buy the new place, probably not. First banks require 6 months of reserves for both house payments to avoid a buy and bail scenario. Some people have used the scenario you describe as a way to get into a better house and then once the new house closes, stop payments on the first house. Underwriting has gotten really tough! Also renting to a family member might be construed as not an arms length transaction. This scenario depends on so many factors. Job history and reported taxable income, Debt to asset ratios and of course credit score. For sure it would be easier to buy another house if you sold this house first. Banks scrutinize everything nowadays.
If you like my answer, please select best answer and give a thumbs up, thanks!
0 votes Thank Flag Link Tue Feb 1, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer