Home Selling in Amarillo>Question Details

Christina Da…, Both Buyer and Seller in Amarillo, TX

can i buy another house if i'm renting out my current one?

Asked by Christina Danner, Amarillo, TX Fri May 4, 2012

Help the community by answering this question:


Yes you can as long as you qualify. Typically lenders want to see 2 years of landlord experience in order to use rental income. This is shown through your tax returns. It is still possible to use the rental income with less than 2 years in most cases I have come to find out. I am refinancing a client right now with 1.5 years of rental income on his two properties and the lender is allowing us to use the income for qualification purposes. If you qualify without the rental income this may not even be an issue but it is something to be aware of.

If you have any questions on this please feel free to give me a call. Right now my best lenders have 30 year rates at 3.5% and that is also giving you a lender credit of almost one full point... so your closing costs would be minimal.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Fri May 4, 2012
As long as you meet the underwriting guidelines you should be able to. Also, be prepared to provide the lender with a copy of the lease.
0 votes Thank Flag Link Fri May 4, 2012
Before you can qualify for a mortgage on a second home and rent out your primary home, you will have to show your lender that you can meet the financial requirements. Every lender will have specific financial requirements, but they will all want to make sure that you can handle both payments. They may allow you to count a percentage of the rental income that you will generate from your home toward your total income. You will have to have enough money in savings to make both mortgage payments for a few months in many cases.
0 votes Thank Flag Link Fri May 4, 2012
Yes just speak to your lender about buying investment properties. They will look at your income, lease agreement, & normally require a larger down payment on a investment property.
0 votes Thank Flag Link Fri May 4, 2012
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