I’ve had many clients recently ask me about keeping their home as a rental and purchasing a new home. If this is you, here are the general guidelines of what loan officers have told me need to take place in order to make this happen. Please note that this is for general information purposes only and is not intended to be real estate advice. For specific information on this subject you are advised to seek competent advice from a qualified loan officer.
The easiest scenario to make this happen for you is if the loan officer deems that you qualify for both loans without having a renter in the property.
If you do not qualify for both loan payments, the following will need to occur in addition to all of the other qualifying factors that go into obtaining a loan:
The lender will require that you have 30% equity in the home. In order to prove this, you will need to pay for an independent appraisal.
The lender will require an executed rental agreement.
Finally, the lender will require proof of a security deposit from the renter who entered into the rental agreement with you.
If you have any additional questions, feel free to contact me or your loan officer.