1. How much you owe on your current mortgage
2. How much your home's value is (#1 & #2 will help determine if renting out your vacated home can use the rental income to qualify)
3. How much your monthly or annual income is
4. The sales price range of the new home you are interested in
5. How much of a down payment you want to put down
6. What your minimum monthly debt payments are (car, credit cards, student loans, etc.)
7. Any details about your credit (score, what is on it, etc.)
There are many factrors that will go into whether or not you would qualify for a new mortgage. If you have an FHA mortgage on your current home, then you cannot get another FHA loan until that home has been sold or the loan paid off.
You will most likely have to qualify with both your current mortgage payment and the new one. In order to use a lease to offset your current payment, there are several requirements. First of all, you will have to have an appraisal performed on your current home that shows that you have at least 25% equity in the property. Many people will not meet that requirement. You would also need a signed 12 month lease and a documentation of where the tenant's security deposit has been deposited into your bank account. All of this would have to happen prior to you closing on a new home.
Sr Loan Officer / FHA 203K Renovation / HomePath Specialist
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Your Mortgage Advisor
PHH Mortgage, Inc
Senior Mortgage Consultant
First Century Bank, N.A.
620 Hembree Parkway, Suite 100
Roswell, GA 30076
You can always consult with a lender to see if you can be pre-approved for a certain amount. As far as renting and buying. This is one of those tasks that almost need to be done simultaneously. You can't move out until you have somewhere else to go. Which means you can't rent it until you are out.
My question would be do you already have someone to rent your townhouse? If not, how are you going to be marketing it?
Honestly, my first priority (which is just a matter of opinion in this case) is I would speak to a lender to see if I need to show that rental as income before I can buy something else. Then you can set your 2nd, 3rd priority.
Good luck and I hope everything works out for you!!
Find a good local mortgage professional and talk to them about your plan. I feel relatively certain it can be done, I am seeing people in my area do it. Home is underwater or they just do not want to sell in this depressed market, so they rent the current home and buy another one.