Would like to buy new house but cant sell current one without taking a $60,000 hit, so thinking of renting it out. Can I even get a new mortgage?

Asked by Greg, Pembroke Pines, FL Mon Apr 25, 2011

Bought first home (townhouse)8 years ago while wife was in graduate school (poor college student), she has been done for 2 years and we make more than double that salary, but housing market has taken a dump and we are $60,000 under. We commute 45 miles each way and would like to move closer to work, but need help trying to figure out how to proceed. Never been behind on payments, association dues up to date, and thinking of renting out (even if at a small loss) in order to move to a house with yard and garage to start a family. Live in 33029 but would like to move to 33060 or 33062 at ($200,000 or less range).

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10
Ximena Rosen…, Agent, Coral Springs, FL
Wed Mar 5, 2014
Hi Joanne,

I can help you.

Please feel free to contact me.


Thank you,

Ximena Rosensweig
Realtor
SIGMA
Direct Line: 954-670-7994
xrosensweig@gmail.com
Languages: English, Spanish
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Sat Dec 14, 2013
Your first step should be shopping around for a mortgage broker that can explore all your financing status and advice you properly. Mortgage brokers have access to many banks, private lenders and different programs. Choose one that can answer all your financial questions in the first meeting and see if can qualify for an amount that can leave you with some money in your pocket every month.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes
Jacques Wurms, Agent, Plantation, FL
Sat Dec 14, 2013
Converting your old home in an income producing rental property is NOT a negative for buying a new home. I would advice you to talk to a mortgage broker and he can give you an answer after looking at all the facts.

Please feel free to call me at 954-383-0090 I work with very good people that are happy to look at your situation.
Additionally hereby my website where you can look at some properties and compare neighborhoods, schools etc..
buysellhomesinbroward.com

Good luck
0 votes
Dale Walters, Home Buyer, Phoenix, AZ
Sat Nov 23, 2013
Section 1031 of the Internal Revenue Code allows you to rollover the gain in one property to another "like kind" property. Think of it like rolling over a 401(k) into an IRA, the rollover is tax free and defers the tax until some time into the future when you eventually sell the property. This can be done multiple times.

There are some specific rules that have to be followed for the exchange (roll over) to be tax deferred. Please consult your realtor or tax advisor.
0 votes
Meir Aloni, Agent, Plantation, FL
Sat Nov 23, 2013
Greg, keep in mind that you will lose your Homestead exemption; your taxes will be higher, once you rent...:(

****Did you like this post? If so, please click Green thumb. Thank you!

With enthusiasm,

Meir Aloni & Team

CRS (Certified Residential Specialist)

CDPE (Certified Distressed Property Expert)

RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!
0 votes
Linda Stark, Agent, Fort Lauderdale, FL
Sat Jan 14, 2012
Greg, if you would like to get some idea as to how much you can get for rent on your townhouse and what is available in your price range in those zip codes please feel free to contact me.

Linda Stark
Century 21 Hansen Beaches
3351 Galt Ocean Drive
Fort Lauderdale, FL 33308
954-899-4112
E-mail: linda.stark@century21.com
http://lindastark.southfloridamls.com/
0 votes
Gregorio Den…, , San Diego, CA
Mon Apr 25, 2011
As Lew said, it depends on your income and your ability to support both mortgages for qualification. Depending on if you are seeking an FHA or conventional loan for your new purchase, you would need to document 25% to 30% equity in the property you are vacating in order to count the proposed rental income. If you don't have the equity you can still qualify by showing enough income to cover the Principal, Interest, Tax and Insurance (PITI) on both properties and still have a debt ratio under 45%. There are also reserve requirements that may vary from lender to lender but you should anticipate having 6 months in liquid reserves.
Web Reference:  http://WeFixRates.Com
0 votes
Lew Corcoran, Agent, Easton, MA
Mon Apr 25, 2011
If you plan on renting out your current home so you can move, and as you do not have at least 25% equity in that home, you will not be able to use the rental income to help qualify for the new mortgage. Your current mortgage obligation will be counted in your total debt obligations.

You should talk to a mortgage broker or lender in your area to see how much mortgage you can qualify for before you begin looking for a new home.
Web Reference:  http://Lew.BestChoice.net
0 votes
NA, , 08085
Mon Apr 25, 2011
Yes you can get qualified to buy a new home. The net loss on the rental will be deducted from your income.

Few bits of advice make sure to get a check for rental deposit and make sure that you have a great rental agreement.

Please feel free to email me to get you pre qualified.

Guajana Skyers
Community Banker
Home Savings Bank of America
347-415-6083
email: gskyers@myhsoa.com
0 votes
BG, Home Buyer, Phoenix, AZ
Mon Apr 25, 2011
if your house value dropped so is the house that you plan to purchase. It is a even trade in my opinion. If you can afford both mortgages, then why not ....
0 votes
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