I want to buy a second house but dont want to sell my current home want to rent to family member my current price range of 135-150k

Asked by crownheights74, Orlando, FL Thu Apr 11, 2013

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Bryan Knight’s answer
Bryan Knight, Agent, Baldwin Park, CA
Fri Apr 12, 2013
If you are planning to rent your current home, the general rule of thumb is, you will need to have an executed 12 month lease on the property and verification that the security deposit check has cleared your account. At that point the mortgage payement for your current primary residence can be offset by the amount of rental income that you will be earning. However, this is all subject to underwriter discretion and investor guidelines. If your last names are the same it will more than likely set off a red flag to the underwriter. So you may want to consider leasing your home to a 3rd party (non-related). As long as you disclose that you are planning to turn your current home into an investment property and you have lived in the home for at least one year prior to changing its occupancy status you should be fine and not have to worry about committing occupancy fraud. I work with clients all of the time who perform the same type of scenario. If I can be of any assistance please do not hesitate to reach out to me and I will be more than happy to help!!

Best regards,

Bryan Knight - REALTOR ®, SFR ®, AHWD ® / Mortgage Loan Consultant
The Brenparc Team
Greater Orlando Realty USA Inc.
Approved Mortgage Source
NMLS # 859840
407-756-5517 - Direct
407-951-5129 - Fax
1 vote
Beate Rodrig…, Mortgage Broker Or Lender, Sunrise, FL
Thu Apr 11, 2013

if you are in need of a Mortgage Loan to purchase your new primary residence, please feel free to contact me regarding all approval requirements.

Have a great day!

Best Regards,

Beate Rodriguez
Lic. Mortgage Specialist
NMLS# 299 244

1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sat Jan 25, 2014
Unless you can qualify with both house payments, you'll need a legit signed 12 mo. lease with 1st month's rent and Sec. Deposit showing in your account before you close. And if that family member has the same last name as you, the lenders who would allow this, would want extra proof that its not a scam.

However, if you need to use the rental income to qualify, best case is thru lenders who require a min. 20% down.

90% LTV- 2nd Home- NO PMI
85% LTV- Super Jumbo- NO PMI

85% LTV- Invest. /Rental
80% LTV- Foreign Nationals
70% LTV- Manf. Homes over 90k

STATED INCOME ALT -up to Super Jumbo

90% LTV- Short Sale, BK, Foreclosure Forgiveness
80% LTV- FIX n’ FLIP Invest. Prop.
75% LTV- Soft and Hard Money

75% LTV -COMMERCIAL PROGRAMS- upper 4.00% range, 25yr amort.

If you benefit or have benefited from any of my advice or comments on this site, I ask that you please make a donation to the Wound Warrior Project: http://www.woundedwarriorproject.org/

Steve McRory
Pro Option Mortgage/ Florida
Ph: 888 662 4404
NMLS 204296

Prior Service: U.S. MARINE CORPS
0 votes
Love All Ove…, Renter, Washington, DC
Fri Jan 24, 2014
0 votes
Rebeccatrulia, Renter, United Amigos, Mesa, AZ
Sun Oct 6, 2013
Hi crownheights74

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage provides unique benefits for its target market: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. If an individual is a senior citizen and does not intend on moving out of his or her home for some time, a reverse mortgage may be an option worth considering. Eligibility is set by the Federal Government; The Federal Housing Authority FHA tells HECM lenders how much they can lend you, based on your age and your home's value. However, the up front costs and bank fees can be very high.

0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Fri Apr 12, 2013
Sorry, I was didn't read the question correctly.

Depending on the loan program, you maybe able to rent your current house out and use the rent money even if you owe more than its worth.

Now, few programs allow this, but you may have options.

See programs below, then contact me to talk about how to minimize payments and reduce out of pocket costs.

1) 100% LTV- VA / (VA Jumbo @ lower ltv)
2) 100% LTV- USDA/12 mo. into Chapter 13 BK…OK Too
3) 99% LTV- FHA / (FHA to 580 score @ lower ltv)

4) 97% LTV- No monthly MI-No FHA 1.75% Fee
5) 95% LTV- CONDO
6) 90% LTV- No PMI -2nd Home
7) 90% LTV- JUMBO
8) 85% LTV- No PMI - Super Jumbo
9) 80% LTV- Invest./Rental
10) 75% LTV- Foreign Nationals

--------STATED INCOME ALT up to Super Jumbo-----------
11) 80% LTV- FIX n’ FLIP Invest. Prop.
12) 75% LTV- Foreign Nationals
13) 75% CLTV- Short Sale, BK, Foreclosure Forgiveness
14) 70% LTV- Soft and Hard Money
16) COMMERCIAL PROGRAMS-available nationwide

Go to: http://WWW.PRO-OPTION.COM or call 888-662-4404

Steve McRory
Pro Option Mortgage/ Florida

Prior Service U.S. Marine Corps
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Fri Apr 12, 2013
Your wording in your post was correct, you want to buy a second house, meaning an investment property.

You can't buy a 2nd home and rent it out on a 12 mo. lease as that would be occupancy fraud and loan fraud.

Best case on an Investment Property loan would be at an 80% LTV (20% down), and with rates so low and values jumping back up so fast, I say buy NOW!

BTW- I'm practicing what I preach, I submitted an offer on a property yesterday as I can't see letting this time pass me by without taking advantage of these prices when they are going up so fast!

0 votes
Jennifer Bar…, Agent, Winter Park, FL
Thu Apr 11, 2013
Hi Crownheights 74,

The average price of a home here is 133. There are several great deals in the Orlando area. I have a ton of tools that can help you decide what is best for you. I can help you with the rental price if you have not already have one in mind. The 135-150k budget is a great price range. Take a minute to look at my profile to find out more about me. Hiring the right team makes all the difference. I look forward to earning your business.

Jennifer Barker
Exit Realty Central
0 votes
Maria Jimenez, Agent, Orlando, FL
Thu Apr 11, 2013
Hello There:
There is different factors that you have to have in consideration...
Do you have a mortgage in your current home? Are you purchasing your second home with a loan?
Ideally you want to cover your mortgage payment on first house with your rental income.
And get the best house under your range according to your financial situation. (loan or cash)
Are you purchasing a bigger house than what you have now? this will help to get a better idea of what kind of interest rate you'll get... Are you down sizing? let me know if I can help... I'm sure anybody that answered will get you a great advise..
0 votes
Vincent Paige…, Agent, Orlando, FL
Thu Apr 11, 2013

Hope you are well. I can get both goals done quickly, check recommendations on my page, speak to you soon.

Vincent Warren Paige, Jr.
REALTOR® | RE/MAX Showcase
Certified Broker Price Opinion Registered Agent (BPOR)
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.807
0 votes
Jonathan Sch…, Agent, Lake Mary, FL
Thu Apr 11, 2013
If your family member doesn't rent the property we would be more than happy to help you with finding a great tenant and managing the property.

The Management Fee which is 10% of the rent per month
The Leasing Fee which is ½ of the first month’s rent.
Lease Renewal fee of $150 when the tenant’s lease expires and we re-execute a new lease (hopefully for a higher rent amount!)

We don’t charge any Advertising fees while the property is vacant, and we don’t mark up the cost of any repair work and no up front fees. Email me and I will send you a copy of our Owners Info Guide that will give you some more information too. You can also view our website at : http://www.allcountysterling.com

Please email or call if you have any question.
Best regards,

Jon Schaffer, Property Manager/Realtor
All County Sterling Property Management
Office: 407-674-5601 Ext. 5
Fax: 407-674-5631
E-mail: jschaffer@allcountysterling.com

"The finest compliment I can receive is a referral"
0 votes
Diana M. Per…, Agent, Kissimmee, FL
Thu Apr 11, 2013

It would be my pleasure to assist you in this endeavor. Whether you just need to talk about what it is that you want or actively start looking, I'm here to help. :-)

Check out my website to see the available properties in the areas that you want. You can send me an email/text/or call me and we can discuss your purchase and rental.

~Don't worry, I'm not a pesky broker. I'll only send you what you want when you want it!

Warm regards,
Diana M. Perez, J.D.
Broker/Owner | Professional Real Estate Team, LLC.
Direct:(407) 729-3560 | Fax:(407) 933-0731
E-mail: Diana@ProfessionalRETeam.com
0 votes
Gloria Gibson, Agent, Altamonte Springs, FL
Thu Apr 11, 2013
The details of how to accomplish this depend upon some variables. It will depend upon how much income you have as well as your assets, including the home. Some lenders want that home rented at the time when you apply for another loan but once again it depends upon how much buy power your have.

I know a few lenders that I could recommend to you that would work with you to accomplish your goal.

Good Luck,

Gloria Gibson,
Exit Realty Centrall
407 234 4323
0 votes
Kate Paris, Agent, Ocala, FL
Thu Apr 11, 2013

I can help you with the purchase of your second home. Give me a call or send me an email with your desired location, home size and time frame.

407-230-7807 or RealtorKateFL@gmail.com

Kate Paris, Realtor
Charles Rutenberg Realty
1900 Summit Tower Blvd.
Suite 220
Orlando, FL 32810
0 votes
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