you have some good answers below, my website has a link to a mortgage broker than can help you with your loan needs. Good luck
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Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
There is no need to contact your current lender, the expectation (or shall I say “requirement”) for most loans is occupation of at least one year, which you have met.
Regarding the new property, you would have to go through the process of being pre-approved (your second "primary home mortgage") and counting all of your current home's expenses as well. Of course, a primary question will be whether the lender will allow you to count rental income and or what you must do to have them count rental income.
I would suggest you contact the following individual to perform your pre-approval ( See: http://www.Steven-Anthony.com/GettingStarted for more info):
Julie Thall, email@example.com , Direct: (650) 931-0606
Let me know what your looking for as you need to buy a little bigger, better and newer house to be able to use this program... I will email or post listings for you to consider.
CHF Access half percent down flyer, pdf
Sheryl Arndt, standard needs list checked, pdf
CHF Access income limits http://tinyurl.com/8lzf8he
Sheryl Arndt, Broker – Sr. Loan Officer
Best of Luck!
Since you have lived in your home since '08, you have more than enough time in to rent out you home. I have worked with many clients in buying rental property in the last few years and I have never heard a lender requiring that you buy a bigger house or in a vacation area?
Yes, you will have to qualify for both payments as some have said but I do know that if you have a 1 year lease signed by a tenant (can't be family or friend) your lender may take up to 75% of that monthly payment as income.
With 35% of the sales in the area being investors and interest rates being so low nows a great time to buy a second property. Right now it's the best investment you can make! Your first step should be to talk to a lender,
I require all my new clients to be pre-approved prior to working with me.
If your buying another home in the same area, it must be bigger and better than the house you currently live in. If it is a smaller house, the lenders will question if you will truly be moving into the house, and may categorize it as an investment. ....which can be more expensive and have higher down payment requirements with stricter guidelines. For example, if your moving from a 3 bed 2 bath 1500 sqft home, into a 4 bed 3 bath 2800 sqft home, you will not have a problem. If your doing the opposite, you may be subjected to investment loan guidelines.
Also, if you do not show a history of owning rental properties per your federal tax returns...you will have to qualify for both payments on both properties, and you will not be able to factor in any potential rents to off set your debt to income ratio. It is important to clear this up with your loan officer before you make an offer.
Also, almost all "2nd home" financing require that the home be located in a "resort like" or "vacation" area...i.e. palm springs, lake tahoe, napa, etc...and cannot be geographically near to your current home. If the home your buying is in the same general area as your current home, you won't qualify for 2nd home financing.
Feel free to call me with any questions
Dolphin Real Estate