Home Buying in Battle Creek>Question Details

Jenny W., Home Buyer in Battle Creek, MI

Can I rent out my underwater house and then get a lender to approve me for another mortgage? I have a good down payment saved up.

Asked by Jenny W., Battle Creek, MI Thu Apr 18, 2013

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6
all great answers. To add to all the previous post you will also need to be current on your mortage with the property you are wishing to rent. Being underwater is fine to rent as long as payments/taxes are current.
0 votes Thank Flag Link Fri Apr 19, 2013
Indeed you can. Some good advise was already provided, and also let me clear something up. You either need to qualify with both mortgage payments or your rental property needs to be reported on taxes for ONE year in order for me to exclude the rental house mortgage payment in your qualifying ratios. Keep in mind there is a little bit more that goes into calculating profit/loss on rental properties which comes into play with qualifying for a new mortgage.

I myself am a landlord, work with lots of landlords and I would be happy to help you.
0 votes Thank Flag Link Fri Apr 19, 2013
Jenny,

Yes you can rent out your underwater home. However, in order to purchase another home you must qualify for both mortgages.

Good Luck!

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Thu Apr 18, 2013
Sure, if you can qualify for both loans.
You'll need to be a landlord for at least 2 years before you can take off 75% of the mortgage.
0 votes Thank Flag Link Thu Apr 18, 2013
You can indeed lease your current home, the question is if you qualify for both mortgages or not. You need to talk with a lender to make sure.
0 votes Thank Flag Link Thu Apr 18, 2013
Yes you can. But it will depend on your lender, your down payment, your debt to income and your reserves. Call a good lender if you have one or call me at 269-419-9483 for a reference or any other assistance! Good luck!
0 votes Thank Flag Link Thu Apr 18, 2013
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