Financing in San Jose>Question Details

ram_perl, Other/Just Looking in San Jose, CA

getting a second loan for new home purchase

Asked by ram_perl, San Jose, CA Tue Jun 10, 2014

I currently own a house. I am planning to move and buy another house and converting my current resident home to rental. I heard that inorder to qualify for the new home loan I can get the rental lease agreement for 1 year and also the security deposit, then the 75 % of rental income considered for my mortgage payment. Also I heard that the rules are changed, I need to have the sufficient income to qualify for both the loans without considering the potential rental income. Is this depends on the lender to handle it differently or what is the general rule that every lender handle it? could you please through some light on this?

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Answers

2
Your lender for the new home will require your current property be appraised.
This appraisal will verify that there is 30% equity. The appraiser will also let us know what rent will be for the property. We will use 75% of that rent. You will not be required to provide a lease agreement.
You will need to qualify for both payments.
75% of the rent will be added to your income to help off set the payments.
0 votes Thank Flag Link Fri Jul 25, 2014
Hi Ram,

It is now possible to count 75% of the rents in qualifying.

Best regards,

Elva A. Wormley
Mortgage Consultant
elva@ewormley.com
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
0 votes Thank Flag Link Fri Jun 13, 2014
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