I am buying a home and I want to buy another home to rent. Do I need to make double my income?

Asked by Gale, Oklahoma Fri May 13, 2011

I live in Oklahoma and I want to buy a house to rent while still buying the home I live in now. Would I have to doulble my income or could I get a loan on my same salary becuase it would be a rental home?

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..., , Lexington, MA
Fri May 13, 2011
You might be able to finance both at the same time. Remember that the home you will rent out WILL require a higher down payment than the one you plan to live in AND the rental income won't be considered for mortgage purposes until you have a 2-year history of renting that particular property.

Let me know if you would like a pre-approval to see if you can afford both or not. I offer financing in all 50 states.

1 vote
Nick Pakulla, Mortgage Broker Or Lender, Rockville, MD
Fri May 13, 2011
The answer is that you could qualify carrying both. You can count income derived from an operating income statement and rent comp schedule on an appraisal for a new investment property, so if this number (usually 75% of what it actually would rent for) is enough to offset the debt than you wouldn't (in theory) need additional income.

You will want to work with a skilled small bank that can handle processing both files at the same time - doing both with 2 separate lenders would be a bad idea. As others have mentioned you would need to go through a full approval to determine what is possible - as the financing on one will affect the financing on the other.

I'd be happy to assist. Feel free to contact me.
Web Reference:  http://www.nickhomeloan.com
0 votes
Elliot Ward &…, Agent, Columbia, MD
Fri May 13, 2011

The best way to find out if you can obtain financing for an investment property is to contact a trustworthy lender. They can analyze your income, debt ratio, credit, down payment, and goals to give you the answers you are looking for. Good luck!
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Fri May 13, 2011
No, not necessarily. You might already make enough to carry two loans. Its all a credit, debt vs income thing. Go visit a loan officer at your bank and discuss it with them for a real answer.
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