I want to rent out my home and buy a new home. When the market gets better I plan on selling it. It still has mortgage. SO will I be able to get a second mortgage? I have some debt but plan to pay off completely. The house I want to buy will cost less. Also will I be able to deduct property tax and interest for both mortgages?
A lot depends on your debt to income ratio (how much you have coming in versus how much you are paying out, and if your house was your first house and your income hasn’t greatly increased very much, you probably won’t qualify for that big of a loan. You will still have the same deductions plus a few new ones (applicable to investment property) but your hazard insurance will increase quite a bit (because it isn’t owner occupied anymore).
Remember, you aren’t seeking a second mortgage, but merely a second first mortgage.
go to zillow.com–they have this new section where you put in your data anonymously to see if you can qualify for a mortgage. that way you will get some idea whether mortgage companies will give you a 2nd mortgage.
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you can as long as the bank gives you money to do so. And if someone wants to rent your place.
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Once you qualify for a second mortgage you can.
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A lot depends on your debt to income ratio (how much you have coming in versus how much you are paying out, and if your house was your first house and your income hasn’t greatly increased very much, you probably won’t qualify for that big of a loan. You will still have the same deductions plus a few new ones (applicable to investment property) but your hazard insurance will increase quite a bit (because it isn’t owner occupied anymore).
Remember, you aren’t seeking a second mortgage, but merely a second first mortgage.
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Yes, however it is usually easier if you already have a rental contract in place for your current home, that way the rent will count toward your income and help cover the debt of a second mortgage payment.
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