Home Selling in 49442>Question Details

Lois Rowe, Home Seller in 49442

I am interested in purchasing a home and have been thinking of renting my present home . Will a bank give me a mortgage loan in that situation?

Asked by Lois Rowe, 49442 Mon Jan 3, 2011

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The answer to your question depends on whether your income can support both the new monthly housing expense in addition to the current monthly housing expense. The monthly housing expense includes principal, interest, propertey taxes, homeowners insurance, and homeowner association dues (if applicable). If you need to count expected rental income of your current home to qualify, you will need at least 30% equity in most cases.

Bottom line it all depens on your debt to income ratio.
0 votes Thank Flag Link Tue Jan 4, 2011
The most important thing to do first is to talk to your current mortgage lender. If you purchased your current home with a standard Michigan mortgage and still owe on it, you need the lenders permission to rent out your home. You more than likely agreed in your contract to use the home as your primary residence. If the lender finds that term has been violated, they can call the note due and payable in full.
Web Reference: http://BuyTheLakeshore.com
0 votes Thank Flag Link Mon Jan 3, 2011
You would have to talk to a lender about your situation. As the other answers stated there are a lot of factors that go in to getting a loan or not. When it comes right down to it you would have to show that you have the ability to pay back any loan that may be given. Ask what programs may be available from the lender. If you shop around for lender make sure they are not running a credit report every time you check with a different lender. Too many inquiries into your credit can lower your score.
0 votes Thank Flag Link Mon Jan 3, 2011
As far as a loan--much will depend on current equity/oustanding mortgage, your overall finances, debt, credit, etc., therefore consider visiting with any qualified loan officer(s), after reviewing your information, he/she can make a determination on qualification--then go from there.
0 votes Thank Flag Link Mon Jan 3, 2011
You will have to talk to a lender, but it is possible. It will depend on your income, credit and they may want to see see a lease agreement with 3 months worth of rent in a separate account. But for sure worth checking out. If you do not have a preferred lender I have some listed on my website.
0 votes Thank Flag Link Mon Jan 3, 2011
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