Will owning a rental home hurt my mortgage application for a vacation home?
I hold a mortgage on a rental property in Illinois that is fully rented. I would like to buy a vacation home in Florida for my future retirement home. Will having the mortgage for the rental home hurt me? My brother says that as long as it is rented out it will be neutral when deciding whether I qualify for a loan. Is this true in this current economic climate? by sny_she from , . Jul 22nd 2011
Stephen Harris (stephen.harris)
#38 ranked lender in Ohio - 37 contributions
Conventional Lenders look at rental income off what you claim on the tax returns as income minus expenses. Sometimes it can be a wash other times they may count some of the payment or the full amount. If you make enough income to cover both mortgages it would not be an issue. As long as you have the credit and income you should be fine on getting your 2nd home.
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