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Amanda, Home Seller in Sandy, OR

Should I sell or rent my home? If I keep my home as a rental will I still be able to get a new mortgage on a second home which will be my prmary

Asked by Amanda, Sandy, OR Fri Sep 11, 2009

residence? Is the rental market for a 3/2 single family home strong is Doral?

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Answers

4
Whether to sell or rent will depend on you situation. This is not the best time to sell because of fallen values so if you didn't need any of your equity for the down payment of your new house and you can rent it without losing money (meaning your rent will cover all your expenses on the house), then I would say keep it. You also need to make sure you make enough income to qualify for BOTH mortgages as banks are no longer accepting rental income received less than 12 months. If you fit this scenario I would keep the house and wait 5yrs or so.

If you can't afford both mortgages or if you will lose money, than you should probably sell or stay in your current home. If it's a short sale than it gets a bit trickier, so call me if that's the case so we can discuss it further.

Let me know if you have any other questions and click my link below if you would like to find out what your home is currently worth. Good luck.
1 vote Thank Flag Link Fri Sep 11, 2009
Keep in mind that renting your home will come with responsibilities. The majority of first-time landlords wish that they had never taken the leap. A landlord's obligations vary depending on two things; 1) Your state laws; and 2) Your written rental agreement. The answer to your second question, in most cases, is yes. There is nothing prohibiting you from having more than one mortgage in your name. I have many outstanding mortgages, as do most real estate investors. The ultimate decision will be based upon many factors, including your credit score, proof of rental income, etc. You may also want to look into a new program offered by USA Home Buyer called the Home Mortgage Loan Assignment Program (HMLAP), which allows you to sell your home with the existing mortgage in place. Attached is a link to the article. Best wishes!
0 votes Thank Flag Link Wed Feb 16, 2011
Amanda,

You asked, "Will i still be able to get a new mortgage on a second home," and the answer lies with your lender. I suggets that you talk to one immediately - - - ideally ask your preferred local Realtor for a recommendation. Don't just pick a lender out of the blue - - - the introducion might get you into a higher-priorioty position (more attention - - not ncessarily more borrowing power) with that lender!

A few years ago, buyers of second homes could easily qualify, especially if they had no more than an 80% mortgage on their existing home. Nowadays, you'll probably need to prove (via your lender's appraisal - - - at your cost) that you have more than 30% in bona fide current-value EQUITY in your home.

Just as it is for first-time home buyers, your decision-making process should start with the loan qualification process. That might stop you "in your tracks," but it might not!

If you pursue this further, talk with your tax advisor about taking full advantage of all the benefits of owning a rental property. And check out the book, "The Accidental Landlord" by Daniell Babb, if you agree that you should "think deeply" about the decision before moving further forward.

Casey Spencer
Web Reference: http://www.How2SellHigh.com
0 votes Thank Flag Link Fri Sep 11, 2009
Amanda,

You asked, "Will i still be able to get a new mortgage on a second home," and the answer lies with your lender. I suggets that you talk to one immediately - - - ideally ask your preferred local Realtor for a recommendation. Don't just pick a lender out of the blue - - - the introducion might get you into a higher-priorioty position (more attention - - not ncessarily more borrowing power) with that lender!

A few years ago, buyers of second homes could easily qualify, especially if they had no more than an 80% mortgage on their existing home. Nowadays, you'll probably need to prove (via your lender's appraisal - - - at your cost) that you have more than 30% in bona fide current-value EQUITY in your home.

Just as it is for first-time home buyers, your decision-making process should start with the loan qualification process. That might stop you "in your tracks," but it might not!

If you pursue this further, talk with your tax advisor about taking full advantage of all the benefits of owning a rental property. And check out the book, "The Accidental Landlord" by Daniell Babb, if you agree that you should "think deeply" about the decision before moving further forward.

Casey Spencer
Web Reference: http://www.How2SellHigh.com
0 votes Thank Flag Link Fri Sep 11, 2009
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