Home Buying in Crystal Lake>Question Details

pattyroman30, Home Owner in Crystal Lake, IL

How do I buy a new house when I still own and am renting my current one?

Asked by pattyroman30, Crystal Lake, IL Tue Feb 12, 2013

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9
pattyroman30,

Usually if your income will support it and your current home has a lease that shows those expenses are covered you may qualifify for another loan. Contact a mortgage professional in your area and discuss your situation.

All the best,
Gary Geer
0 votes Thank Flag Link Sun Mar 3, 2013
Patty ~ I helped my client do exactly what you would like to do. He worked with my preferred lender to qualify for the loan on his new home and the rent on his existing property was counted as income. Find out if this would work for you by contacting Betsy Ahern at Guaranteed Rate. Her number is 847 592-9194. And for an excellent Real Estate Agent call me at 847 471-6102!
0 votes Thank Flag Link Wed Feb 13, 2013
please feel free to contact us to explain...it is a very simple process. 815.455.5554
0 votes Thank Flag Link Tue Feb 12, 2013
Many factors are involved in such a decision. Certainly, credit history and current standing is basic info for any loan officer. As well, your ratio for income to expenses will be looked at. The very first step is to have an excellent loan officer and a knowledgeable agent you can explain your plan to. How long w/ you own it, are you buying to build income property? Here's an experienced loan officer you can depend on Katie Wresch 815-459-8352. Before you spend weeks looking around, get the facts about what you can afford. Although it is always fun to "look" and dream. Good luck J.S.
0 votes Thank Flag Link Tue Feb 12, 2013
Patty

I would be happy to sit down and discuss your options with you.
0 votes Thank Flag Link Tue Feb 12, 2013
Hi Patty,

There are so many factors that need to be considered. I have assisted several homeowners faced with this situation. Please feel free to contact me and we can go over your options!

Diane Tanke
Coldwell Banker Honig-Bell
Crystal Lake, IL
847-609-9093
http://www.dianetanke.com
0 votes Thank Flag Link Tue Feb 12, 2013
Hello Patty,

It depends primarily on the following variables:

1. Which financing program do you plan on using for the purchase, I.E. Conventional, FHA, HomePath, etc.?

2. How much equity do you have in your current home?

3. How long have you had your current home rented out?

4. How many months of your current home's payments do you have saved in reserves?

All of these questions might not be applicable - but if you can provide me answers to them I can give you some basic guidelines on what underwriting with require for different programs. I own rental property myself in the area myself, as well as my current home, so I have first-hand knowledge of what is typically required. Please feel free to contact me directly, or via my website - http://www.SelectiveBuyer.com with any questions you might have.

Thanks,

Terry Farnsworth, Licensed Broker

Prospect Equities Premier

http://www.SelectiveBuyer.com

terryfarnsworth@prospectequities.com

(630) 747-3426
0 votes Thank Flag Link Tue Feb 12, 2013
Talk to your mortgage professional. You may qualify with both homes. I have heard from other mortgage professionals that you must have at least 2 years rental history in order for the rent to count towards income. The time 1 or 2 years may differ for mortgage companies. I have also been told however, if you have a voucher program holder as a renter, they can count that towards mortgage immediately because of the guarantees.
0 votes Thank Flag Link Tue Feb 12, 2013
Patty
If you are renting your current home and have been for more than 1 year the mortgage may not count toward your buying power. Provide me with more details so I can give you better information.

Geoff Ommen
Broker Baird Warner
847-271-2622
geoff.ommen@bairdwarner.com
http://www.geoffgetsit.com
0 votes Thank Flag Link Tue Feb 12, 2013
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