Getting second mortgage on new residence

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What does the process look like to get a second mortgage? I bought a condo in a 3-flat in Chicago in Dec '14. I've been fixing it up for 6+ months and plan on finishing all renovations in another 18 months. The plan is to rent the unit out and move to another home, maybe repeat the process. I enjoy the work in my free time. How do I qualify for the second mortgage? Does the 1st mortgage count against my debt-to-income if I plan to rent? I put 5% down to buy the place, and plan on moving onto new property once I can remove the PMI on the current unit. I have 750+ FICO and plan on having 15-20% for the new down payment. Do I have to show x months of rental income before it counts? Do I have to be able to cover both mortgages with 35% of income?

My experience is that they want to see the income from the property you will be moving from in the form of signed leases.  They will also want to see that you have access to a minimum of 6 months of mortgage, insurance and taxes so if you are vacant you don't immediately go into foreclosure.   

I did this a few years ago and as long as I could show income from the previous property it was no problem getting another mortgage for my next place.

Hi @Kenneth Cowan

There are multiple ways this can play out and some of it is dependent on your lender. It should not be too much trouble however.

In my experience (i did the same thing), you will not need to have two years of rental history for it to count. If you have 30% equity in the first property and a signed lease you can usually count the rental income as part of your DTI. If not you will probably have to qualify with both mortgages.

You will have to ensure you work with a direct lender because sometimes banks have overlays that limit what you can do. You may have to shop around when it comes time for the new place.

Hope that helps a bit. Im sure some more knowledgeable people will chime in soon.

Thanks For the input fellas. I appreciate the thoughts.