Home Buying in Yorkville>Question Details

Beth, Home Buyer in Yorkville, IL

We currently own a town home that we want to rent out in order to purchase a larger home, how do we qualify for another mortgage?

Asked by Beth, Yorkville, IL Sun Aug 12, 2012

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If your documented income is large enough to support two mortgages, you should definitely qualify. However, if you plan to use rental income to supplement what you are making now in order to qualify for the second mortgage - you would have to show to the lender that you had a full-year rental income from your current residence and that it was reported to the IRS.
0 votes Thank Flag Link Mon Aug 13, 2012
First you should sit down with a local lender or mortgage broker. He/she can review all of your financial information and determine what you qualify for. Keep in mind that you'll have to qualify for BOTH mortgages, and you'll have to be able to come up with down payment $$ for the new house. You may also want to talk to a CPA, financial planner, or tax attorney who can explain tax ramifications by turning your primary residence into an investment property.
0 votes Thank Flag Link Sun Aug 12, 2012
The best way is to speak with a mortgage lender. It's always 100% free to speak with any lender regarding financing.

My lender for 10+ years Chai Charin with 1st centennial is a mortgage Broker so he will scout out the best deal for you. Chai can be reached at 630.430.4481 When your ready to stark looking for homes to purchase you can search the entire MLS at http://www.DanFirks.com It has all the foreclosures and regular sales. The site is updated real time and is the best source for all available properties.

Hope to hear from you soon

Dan
0 votes Thank Flag Link Sun Aug 12, 2012
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