Home Buying in Miami>Question Details

mleavis, Home Buyer in Miami, FL

Is it possible with today's market to rent out a condo and buy a new home at the same time?

Asked by mleavis, Miami, FL Fri Jan 24, 2014

I'm hearing that you may have to rent for two years to show stabilized income on that property. Move to another rented property before being allowed to buy. I also heard that you have to put down a much larger down payment on the 2nd home.

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Answers

20
Hi. In lending one size does not fit all. Income, credit and financial management history of an individual are analyzed. Consult with a lender to determine if you qualify or learn about the steps to achieve this plan.
Good Luck

Jackie Nurse
First Service Realty
305-609-1232
nursejackiehomes@gmail.com
1 vote Thank Flag Link Fri Jan 24, 2014
You can find out quickly and with the correct info within minutes:

http://www.AimLoan.com

You see, the majority of lenders and bank will require that you FIT exactly into the guidelines for Fannie Mae, Freddie Mac or HUD (FHA) that will allow them to immediately sell off your mortgage the day after closing. If you do not FIT they will not lend... it's not rocket science.

You do have another alternative (other than Loan Shark type mortgages with high rate and/or fees) if your scenario doesn't FIT the guidelines--credit unions.

A credit union may make an informed business decision and decide whether or not to give you a mortgage from the member's money.

Here's a very helpful website with a wealth of information on mortgages that was created by a HIGHLY respected IVY league Professor at the Wharton Business School:

http://www.MtgProfessor.com

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
Sold On Tampa Team
http://www.SoldOnTampa.com
813.244.9898
1 vote Thank Flag Link Fri Jan 24, 2014
It will all depend on your income, credit, assets, and debt to income ratio.

Chris
1 vote Thank Flag Link Fri Jan 24, 2014
A lot of things are said here and there and you can't believe everything you hear. You need to sit down with a mortgage professional so that you can discuss your options based on your qualifications, when it comes to home ownership every case is different.
1 vote Thank Flag Link Fri Jan 24, 2014
Wow, a lot of answers and a lot of inaccuracies were sent to you. I just did this for myself and can tell you exactly what you need to do to be successful. I will ask on this one however that you contact me directly because I will not publish all of the information I am going to give you. That is for a client only. However, as there is no obligation to call mine or any other office, a couple of points. One answer you received contained a lot of strong information, real nitty-gritty stuff, but still dependent on your situation. Also, no two years necessary, FHA is available to you for a lower down, and other key points. Hire a professional for sure, our office or one of the other knowledgable respondents. We have a full service brokerage with in-house attorney, plus property management assistance that you are going to need.
1 vote Thank Flag Link Fri Jan 24, 2014
There are lots of first time home buyers and others that may have lost their home due to the past market, that are renting a condo or SFH at the moment, and are in the process of purchasing a home. It is only natural, since everyone needs a place to live while they are purchasing. If you know that you plan to buy in the next few month then get a rental contract that is Month to Month, so you will have no penalties when vacating the condo..

When it comes to down payment, it will depend on your individual situation and what type of loans you qualify for. So like others have said, only a call to a local lender will give you the correct answer. Was this answer helpful? If so please click on "best answer" or on the "green thumbs up".

Tony Vega
Antonelli Realty
1 vote Thank Flag Link Fri Jan 24, 2014
Maybe, maybe not; for a personalized answer you really should be consulting with any licensed loan officer...
1 vote Thank Flag Link Fri Jan 24, 2014
Only way to know for sure is to sit down with a local lender who can review all of your financial info, and details about the rental property. There are different variables involved, and nobody here can answer those questions based on the info provided.

When buying a 2nd home, yes, you typically need to put down at least 20%. BUT....again, I'm not a lender and there are other details about your situation that are needed.
1 vote Thank Flag Link Fri Jan 24, 2014
I would recommend getting in touch with a local agent, they should be able to give you an idea as to what the market looks like in your area.

I have a large network of trusted agents, and I would be more than happy to get you in contact with someone that is sure to go above and beyond for your real-estate needs!

4802759566
rebeccakallhoff@gmail.com

I look forward to getting you in touch with the right agent!
0 votes Thank Flag Link Fri Jan 31, 2014
In today's market, larger amounts of cash down are becoming the norm and is more desirable for a seller.
Web Reference: http://www.olgarubin.com/
0 votes Thank Flag Link Fri Jan 31, 2014
It is definitely possible, but many details will factor into it. You need a lender experienced in the subtleties of what matters and what doesn't rather than one who just crunches numbers and says yes, or no. These people often end up wrong later on due to not asking and understanding the right things upfront.
I'm available to help you at your convenience if you wish.

I can do a full underwriting approval ahead of time if need be and I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:
0 votes Thank Flag Link Fri Jan 31, 2014
You would need to consult a lending professional to obtain the most accurate answer.
0 votes Thank Flag Link Fri Jan 31, 2014
You would need to consult a lending professional to obtain the most accurate answer.
0 votes Thank Flag Link Fri Jan 31, 2014
I don't think you would take medical advice from your mechanic so don't take financial advice from your barber! In other words...talk to a mortgage professional who is licensed and trained to answer your financial questions.

The rule that is being referred to here is buy and bail guidelines. The industry is worried about individuals trying to capitalize on a down market and buying a home then walking away from their other property that may not be in as strong of a financial position.

You MAY buy another property without having rental history on your existing home but there are guidelines that need to be followed and way too complex to go over here. Feel free to reach out to me and I will give you the straight answer to your particular situation.

Reasons to choose Carrington Mortgage:

Industries lowest rates and fees
Fast service - 25 day close on time pledge or $500 off closing cost
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Non-traditional credit ok
Free prequalification’s
First time home buyers welcomed

Reasons to choose me:

Over a decade of experience
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Local trusted expert for FHA, VA, Conventional, USDA, and Jumbo Loans

Joshua Lerette - Sales Manager
Carrington Mortgage Services, Inc.
727-488-7355
Joshua.Lerette@Carringtonms.com
NMLS#237468
0 votes Thank Flag Link Tue Jan 28, 2014
There are a lot of options out there. Everything from hard money to first time buyer programs. I have a lender that can work with you to get want you want. Call/text me at 305-401-1587
0 votes Thank Flag Link Sat Jan 25, 2014
I would say more than likely the answer is yes, but you still need to send down with a lender to get the particulars and steps to do that planned out. You may need a particular amount of reserves and you will also be limited to loan amounts more than likely so go get it all mapped out and then call a professional and start shopping for the new home!
0 votes Thank Flag Link Fri Jan 24, 2014
If you have financial ability to buy a new property....just be use you income in salary or ...another good income. Bank is not able to use incomerfrom you condo. Need more information 305 519-3199
0 votes Thank Flag Link Fri Jan 24, 2014
It all depends on your credit, income, assets vs liabilities & net worth picture. Talk to a knowledgeable lender and get pre-approved first to help plan your strategy. And if you call or write me I can answer some of your questions having had over 30 yrs full-time experience in this industry, aslo owning my own homes & investment property and refer you to several very good ones. BTW, yes the 2 yr rule does apply in order to show landlord history via at least 2 yrs Sched E on your tax returns. Otherwise (and even after the 2 years) you will need to qualify for both/all mortgage(s) you have outstanding and show timely payments, NONE late in 2 - 3 years. Many questions you need to answer to get great advice so call or write me I can help. One of the "rules of thumb" is only 75% of the gross rental income (or less) will be used to qualify you. So that could be a +ve or -ve depending on the cash throw-off of the rental property. Many factors to consider and great credit scores over 720 or more and all the income & assets documented to justify the loan. May have to put 30% down on the investment property.
0 votes Thank Flag Link Fri Jan 24, 2014
Good Morning,

As you can see from the prior responses, the only way to know what is a possibility for you is to speak with a loan officer than can explain the process to you. A lot will depend on your income, credit score, and of course the difference between the rental income you will receive and the payments you will be making on that property for maintenance and mortgage. A qualified loan officer can walk you through the process and let you know how to proceed forward.

I do have a loan officer that I have been working with for several years now and would be happy to pass along his contact information. Please feel free to send me a message and I will forward his information to you.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes Thank Flag Link Fri Jan 24, 2014
Good Morning,

As you can see from the prior responses, the only way to know what is a possibility for you is to speak with a loan officer than can explain the process to you. A lot will depend on your income, credit score, and of course the difference between the rental income you will receive and the payments you will be making on that property for maintenance and mortgage. A qualified loan officer can walk you through the process and let you know how to proceed forward.

I do have a loan officer that I have been working with for several years now and would be happy to pass along his contact information. Please feel free to send me a message and I will forward his information to you.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes Thank Flag Link Fri Jan 24, 2014
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