Will a rental house affect our new loan application?
Hello, so my family and I are already halfway through our 30 year loan on our house. We’re currently house-hunting but we still haven’t found the right house for us yet. We plan to put our current house up for rent when we relocate, at least for a while. So we found high-quality brick duplexes for sale close by and based on the listings they have been updated and have long-term leases. Depending on how much cash we put down, the mortgage payment on the house would be anywhere from break-even with rental money completely paying the mortgage, to us pocketing half of the rental money. I was wondering how a rental house will affect getting a new loan. Will it affect it in a positive or a negative way? by dgriffith648 from Glendale, California. Jul 5th 2022
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
when buying an investment property - an appraisal is ordered and the appraiser will provide sales and rental comparables as well as assigning a fair market rental income for the proeprty ....a portion of this rental income can be used to help offset the new mortgage payment ...so depending on what your new payment will be - this new rental amount will either be positive ( can be used for qualifying ) or negative ( will need to be included in qualifying )
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