Home Buying in 45805>Question Details

Tjw043, Home Buyer in 45805

I have a growing family that has outgrown our house. We have been unable to sell. Can we refinance in order to make this property rental & buy?

Asked by Tjw043, 45805 Mon Jan 30, 2012

bigger? Our house has been on the market for over a year unsuccessfully. When I bought the house I was single; I am now married with one son, a baby on the way, and three step-children we have shared custody of. We cannot fit 7 people in a two bedroom/1 bathroom house. We have found a home we feel we could afford. We would rent this house out unless we could find a buyer. Is it possible to refinance in order to buy a bigger house?

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This is a question you would have to ask your banker. Do you know why your home isn't selling? Has your Agent given you useful feedback. Two bedroom homes are not an easy sell and I would be worried that refinancing your current home then hoping you could find a suitable renter is very risky. Owning a rental property is a lot of work but with the right knowledge and assistance it can be a good investment. I know this doesn't seem like a definite answer but I would just like you to think thoroughly before making any quick decisions.
1 vote Thank Flag Link Tue Mar 13, 2012
you can consider trying a land contract option to a well qualified buyer. Do not accept less then 10 % down or ten thousand dollars . Most will end up purchasing home once there capable normally in two years. You can put a balloon at two years to if they cannot purchase you get the $10k and put towards your mortgage etc. Any questions call me anytime !

Rollin Gosney
3302596974
0 votes Thank Flag Link Wed Dec 31, 2014
Dawn is right on in that you need to talk to your banker. You need to find out if your current mortgage allows for your current home to become non-owner occupied (many mortgages have clauses that prohibit this). You also need to find out if you can "carry" current home liens while qualifying for the financing of your next home. Don't forget to discuss with your Realtor all the positives and negatives of owning multiple properties.
I would love to learn your entire situation because mathematically it might work out for you to take a HUGE loss on your current home, just to get out of it, and realize faster gains through smart equity building on your next one.
0 votes Thank Flag Link Thu Feb 27, 2014
Tjw043,
Why refinance? If you did would it lower your payment significantly enough that the rent may cover it? Assuming you did this, do you have equity in the home? Can you afford the current mortgage and the new mortgage if your rental was vacant for a while?
Banks will typically use 75% of the rental income when calculating your debt ratio due to vacancies and maintenance. If your present income, plus 75% of the realistic rent would be enough to satisfy the bank then you possibly could, but you will need to meet with a local lender to make sure.
0 votes Thank Flag Link Mon Jan 30, 2012
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