How hard to buy a second home?

[Juniper117]

We're considering buying a condo right now. We'd buy a SFH a few years down the road- at that time, we'd have over 15% equity and the mortgage for the condo would be under 90k. That would also be our only debt, with the exception of about 10k of student loans.

 

We are considering keeping that condo as a rental property- it would easily rent for more than the mortgage, taxes, etc. Would it be difficult to get a mortgage for a primary residence if we rented out the condo? Or would they look at it just as if we had that much debt in a car loan, etc.?

[tashatodd]

February of this year, we purchased a second home and kept our other home as a rental.. The approval wasnt to hard.. Of course we were told that we needed the 5% down payment (conventional loan). No more 80/20 loans. It was stressing as the mortgage guy said the guidelines were changing daily.. I was anxious to get the closing finished before something happened that caused us not to quailify any longer.

 

We thought about selling our current home this month and buying one with a large yard etc. So I called the mortgage guy and asked if we would quailify. He said yes.. but now they required 6 months of principal, Interest and Taxes in a savings for the rental property. This wasnt a requirement in February when we bought our current home.

 

 

Anyway, not sure that helps..

[jop3]

It's impossible to guess how the guidelines will be down the road, but as of today, the qualifications aren't complicated. You just need to have enough income to qualify for both mortgage payments.