Philadelphia, PA · Member since 2016 · 54 posts · 30 votes
Hi, about 3 months ago I bought a 4 bedroom SFH in the Roxborough section of Philadelphia. Before moving in I chose to make some upgrades to the home such as adding a 2nd bath, fresh paint n fixtures, etc. During these past few months working in the property I've come to the conclusion that the home is a little big for my liking. I've put out some feelers and have a tenant prepared to rent the place for a minimum of 18 months. I would like to buy a smaller home in South Philly. Wondering if I would be able to get a home loan on it or if I would be forced to purchase it as an investment property? Could I count income from the rental on my new loan app? If anyone has any experience with this situation or advice it'd be greatly appreciated. Thanks
Too soon for you to be able to count income from the rental. My banks won't look at it until it hits the tax filings, and I know there's other banks that go 1-2 or more years out. So I would forget about that as an option.
Either way you buy it is going to be as a conventional loan more than likely. The only difference would probably be how much you put down and how much interest you're going to pay.
Thanks. That's what I was thinking but I did a quick google n saw people saying you could do it but that it's more difficult since 2007. I'm just trying to avoid emptying my savings by being forced to put down 20-30% on a new home. 5-10% would be ideal.
