Home Buying in Portland>Question Details

donkiekong123, Home Buyer in Lake Oswego, OR

Do I really have to rent for 2 years before I can buy again? My current home is too small and is now rented out.

Asked by donkiekong123, Lake Oswego, OR Wed Oct 10, 2012

The current home is under water so selling it is not an option.

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Answers

3
Dragos Tavirlau’s answer
You need to get in touch with a lender who can take a look at your financial situation and decide if you can proceed with a purchase or still have to rent for a while. I can see you’re in Lake O so, if you’d like, I can put you in touch with 3 different and realiable lenders in that area. Just let me know. Have a nice day.
0 votes Thank Flag Link Sat Oct 13, 2012
Thanks Dragos.
Flag Sat Oct 13, 2012
Hello Donkiekong123,

You're not sharing enough information in order to properly answer your question. Lending rules will allow you to rent your current residence and purchase a new residence.....as long as you can qualfiy to do so. There isn't a two year probationary rule in place unless you have credit or qualifying issues that would preclude you from purchasing again. An example would be if you just filed for bankruptcy.

If you want to learn whether you have other options available in lieu of renting, please feel free to contact me at your earliest convenience. I have 20+ years in the mortgage business. Thank you.

Tim Mack
Skyline Home Loans
10121 SE Sunnyside Rd #230
Clackamas OR 97015
503-479-7008
tmack@skylinehomeloans.com
0 votes Thank Flag Link Wed Oct 10, 2012
donkiekong123, Home Buyer, Lake Oswego, OR My current home is worth about $30k less than I owe. So, it's not a drastic shortfall, but I certainly don't want to short sale or foreclose over it. But our family has grown, we now have 4 kids and can't fit in the home. Although, we have 700+ credit scores and ample income, we were told that lending laws now prohibit the use of rental income until its been received for 2 years steady. The unfortunate thing is that we rented the home out for 3 years steady (a few years ago).... The rent covers what we owe in mortgage payments. I guess we were told it's changed to thsews new laws so people won't strategically default and dump the old property once they close on the new one.
Flag Wed Oct 10, 2012
I have addressed this several times. The underwriters I work with generally will accept rental credits from a primary residence that has been vacated after 6 months. So if you can show you have vacated the underwater home and rented for 6 months, they will allow you to use rental credits to offset or exonerate you from that mortgage liability so you can qualify for the next property.
0 votes Thank Flag Link Wed Oct 10, 2012
My current home is worth about $30k less than I owe. So, it's not a drastic shortfall, but I certainly don't want to short sale or foreclose over it. But our family has grown, we now have 4 kids and can't fit in the home. Although, we have 700+ credit scores and ample income, we were told that lending laws now prohibit the use of rental income until its been received for 2 years steady. The unfortunate thing is that we rented the home out for 3 years steady (a few years ago).... The rent covers what we owe in mortgage payments. I guess we were told it's changed to thsews new laws so people won't strategically default and dump the old property once they close on the new one.
Flag Wed Oct 10, 2012
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