I want to buy a new house and rent my current house, will you be able to pre-approve me anticipating the rent that I will receive in the near future?

This will depend on your equity position for the house you
will be renting and also, if the house you are buying will be a conventional
loan or an FHA loan. If you are buying the new house using a conventional loan,
the rental house will need at least 30% equity, to be able to use the rental
income, to help you qualify.

 

If you are buying using an FHA loan, you will need 25%
equity in the house you will be renting. You will need an appraisal, not older
than 6 months, to verify you have the equity position required for your new
purchase. Also, in the appraisal, you can request the appraiser do a rent-roll,
to establish current rents for a similar house, in that specific area. The
lenders will use 75% of the average market rent.

2 Responses to “I want to buy a new house and rent my current house, will you be able to pre-approve me anticipating the rent that I will receive in the near future?”

  1. ig says:

    ig…

    I want to buy a new house and rent my current house, will you be able to pre-approve me anticipating the rent that I will receive in the near future? | Primex Mortgage…

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