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Khadar_greene, Real Estate Pro in Point of Rocks, MD

I am interested in getting a larger home and want to rent my townhouse out. Is it possible to get financed in this market with an existing mortgage?

Asked by Khadar_greene, Point of Rocks, MD Wed Sep 7, 2011

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13
Khadar, most of the answers on here are right on the money. All of those things are possible today, and you need to qualify for all of them. You'll need to have a mortgage person look at your financial situation before you can have any real answers to your question as it applies to you.

I have worked with Brent Mendelson, who also responded to your question, and can recommend him highly to get you through that process.

I wish you the best,

Piero
1 vote Thank Flag Link Wed Sep 7, 2011
It could be possible depending on your financial situation and HOA rules regarding renting your home.

I would recommend talking with a lender or two who will best be able to let you know what your options are.

Good luck!
0 votes Thank Flag Link Tue Sep 20, 2011
It may be possible. I work with some great loan officers who can help you determine whether this is doable for you or not... I'd be happy to introduce you to them.
0 votes Thank Flag Link Fri Sep 16, 2011
Hello Khadar:

All the answers are on target. If I were you, I would check out Penfed credit union and NIH credit union. Their rates are awesome and their fees are minimal.

Good luck,

Kim Pham, Broker
A thru Z Realty
kim_realtor9@yahoo.com
0 votes Thank Flag Link Wed Sep 7, 2011
Thank you very much Piero for the compliment. I'm glad you felt that way and hope to work with you again in the future.
Thanks,
Brent
0 votes Thank Flag Link Wed Sep 7, 2011
Khadar

Depending upon your personal financial situation, you may qualify for an additional mortgage. You would need to qualify for both mortgages plus have adequate reserves. If the townhouse is leased, a portion may be able to help you qualify for the new loan. I have lenders available to assist you.
Web Reference: http://craigrosenfeld.com
0 votes Thank Flag Link Wed Sep 7, 2011
Yes it is possible. The question is how much equity do you have in the current townhome? If it's under 30% than you can't use the rental income to qualify. If you qualify carrying both mortgages then no worries. If not then the answer will be no. Conventional DTI is 45% FHA is in theory 55% but better to be under 50%. Hope this helps please let me know if you need more information.
0 votes Thank Flag Link Wed Sep 7, 2011
It is possible but depends on your financial situation (income, new mortgage $$, existing mortgage $$, etc). It's best to reach out to atleast 3 lenders to review your situation. If you need lender contact information I'd be happy to share. Please contact me. Good luck.
0 votes Thank Flag Link Wed Sep 7, 2011
You first have to see if the HOA for your townhouse is willing to allow you to rent!
0 votes Thank Flag Link Wed Sep 7, 2011
Your experienced local Mortgage Broker can provide this information for you.
0 votes Thank Flag Link Wed Sep 7, 2011
You can get a larger home,
You can rent out the Townhouse,
You can get financed,

The important question is,
Does your Lender know about renting it out; most home loans demand Owner/Occupant, and if you are not clear with your Lender, you could have serious problems.

If you can get past that;
Would you be able to rent it for more than you are paying on the Mortgage and Expenses?

Good luck and may God bless
0 votes Thank Flag Link Wed Sep 7, 2011
Hi Khadar

If you have 30% equity lenders will count rent to offset your mortgage. If not you would have to qualify for both with your income. Call me if you want more detail. 443-794-0331
0 votes Thank Flag Link Wed Sep 7, 2011
Hi Khadar

You should check with a lender to see if you can qualify for a new mortgage with your existing mortgage - you will need to have 30% equity I believe in your current home for a lender to count the rental income. Please feel free to email me at dianetaylor@mris.com and I can put you in touch with a lender.

Diane
0 votes Thank Flag Link Wed Sep 7, 2011
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