Investment Properties

[Ren]

Hi HLS, quick question for you – if we have 30% equity in our primary residence, and buy another property with the intention of moving there and renting out the first, does 75% of the potential rental income of the first property count when qualifying for the second, or would it have to actually be rented?

[HLS]

REN
It depends on the lender.
Best case is that with at least 30% equity you need a signed rental agreement and proof of receipt of deposit and you can get credit for 75% of rental income minus taxes & ins..you may need to pay for an appraisal @ $300+ to confirm value.

Worst case is that you don’t get credit for any rental income and need to qualify for mortgage payments, property taxes, insurance & HOA on both properties.

It’s impossible to say for sure, there are so many variables, it’s frustrating for everyone involved until an approval is issued.

If you need any help, feel free to check with me directly for an update…I may not catch an inquiry on a Piggs post…. HLS

[HLS]

REN
It depends on the lender.
Best case is that with at least 30% equity you need a signed rental agreement and proof of receipt of deposit and you can get credit for 75% of rental income minus taxes & ins..you may need to pay for an appraisal @ $300+ to confirm value.

Worst case is that you don’t get credit for any rental income and need to qualify for mortgage payments, property taxes, insurance & HOA on both properties.

It’s impossible to say for sure, there are so many variables, it’s frustrating for everyone involved until an approval is issued.

If you need any help, feel free to check with me directly for an update…I may not catch an inquiry on a Piggs post…. HLS

[HLS]

REN
It depends on the lender.
Best case is that with at least 30% equity you need a signed rental agreement and proof of receipt of deposit and you can get credit for 75% of rental income minus taxes & ins..you may need to pay for an appraisal @ $300+ to confirm value.

Worst case is that you don’t get credit for any rental income and need to qualify for mortgage payments, property taxes, insurance & HOA on both properties.

It’s impossible to say for sure, there are so many variables, it’s frustrating for everyone involved until an approval is issued.

If you need any help, feel free to check with me directly for an update…I may not catch an inquiry on a Piggs post…. HLS

[HLS]

REN
It depends on the lender.
Best case is that with at least 30% equity you need a signed rental agreement and proof of receipt of deposit and you can get credit for 75% of rental income minus taxes & ins..you may need to pay for an appraisal @ $300+ to confirm value.

Worst case is that you don’t get credit for any rental income and need to qualify for mortgage payments, property taxes, insurance & HOA on both properties.

It’s impossible to say for sure, there are so many variables, it’s frustrating for everyone involved until an approval is issued.

If you need any help, feel free to check with me directly for an update…I may not catch an inquiry on a Piggs post…. HLS

[HLS]

REN
It depends on the lender.
Best case is that with at least 30% equity you need a signed rental agreement and proof of receipt of deposit and you can get credit for 75% of rental income minus taxes & ins..you may need to pay for an appraisal @ $300+ to confirm value.

Worst case is that you don’t get credit for any rental income and need to qualify for mortgage payments, property taxes, insurance & HOA on both properties.

It’s impossible to say for sure, there are so many variables, it’s frustrating for everyone involved until an approval is issued.

If you need any help, feel free to check with me directly for an update…I may not catch an inquiry on a Piggs post…. HLS

[Author]

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