Ive been on bigger pockets for some time now, learning a lot about real estate. I want to get into buy and hold real estate to build a strong retirement for the future. My family is ready for a new home so naturally I thought about renting out our current home.
Will the bank want to see this house rented out for x amount of months before they approve me for a new loan so I can move?
Will they require me to have a certain amount of money set aside in the bank as a backup for this house?
Is there any other information you guys have that I might not know before moving forward with this?
Lenders will require that you qualify for both loans without considering the rental income. Once you have two years landlording experience (i.e., rental income on two tax returns) you will able to include rental income when qualifying for loans.
Lenders will want to see six months PITI (plus anything like HOA fees) for the new loan and two months for all existing ones. If you go over four mortgaged properties they will want six months PITI+anything else for all properties.
Jon Holdman, Flying Phoenix LLC
Thank you so much Jon exactly what I was looking for.
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