My wife and I are in the process of building a house that will hopefully be ready around November. At the same time, I would like to start my venture into real estate this year. What worries me is if I found a property and got a loan for it, would I be able to get a loan for our house later this year? My wife and I both have excellent credit and good paying W2 jobs. We never had a late payment on our last house and sold it so it’s need paid in full. The only other loans we have are both our cars. I’ve considered private lenders but I would like to completely rule out a conventional loan before pursuing any private lenders.

@Jordan Johnson - it is doable. What you will need to do is make sure you have enough income to qualify for both loans. Some underwriters are picky and might not let you use rental income from the first property when qualifying for the second loan all in the same year as you wouldn't have filed a tax return yet. But some are fine with seeing bank statements seeing the rent being deposited and a signed lease.

The other thing to keep in mind is, for a conventional loan, they will want you to have 6 month PITI in reserves for the rental property. This is on top of any down payment you need for your new place. Be sure you have enough assets to qualify.

@Jordan Johnson So here’s the most obvious question: Do you need the rental income from Property 1 to buy Property 2? If the answer is: “No dude, my DTI is groovy and I have the down payments and reserves, I just want to lock in low mortgage rates.” Then you’re probably set. When you start needing rental income to qualify you can hit issues with seasoning. I know there are guidelines but I’d still talk to your lender about your strategy. It won’t be the first time they’ve had questions about seasoning periods, reserve requirements (if applicable), etc. Never...ever...ever take some random opinion on BP that “Oh sure, your lender will easily do it.” Odds are that your situations, W2s, bank accounts, etc. aren’t identical. And...well...they aren’t lending you the money :)

Originally posted by @Jordan Johnson :
My wife and I are in the process of building a house that will hopefully be ready around November. At the same time, I would like to start my venture into real estate this year. What worries me is if I found a property and got a loan for it, would I be able to get a loan for our house later this year?

My wife and I both have excellent credit and good paying W2 jobs. We never had a late payment on our last house and sold it so it’s need paid in full. The only other loans we have are both our cars.

I’ve considered private lenders but I would like to completely rule out a conventional loan before pursuing any private lenders.

Being in escrow for two properties at once makes things difficult, but not necessarily impossible. The same lender needs to be doing both. It's doable assuming that is an REI friendly lender. How difficult will depend on if rental income is needed or not as @Andrew Johnson says. Assuming it is, it'll be tough for your lender to give a yes/no until they have non-hypothetical numbers to work with.

Originally posted by @Chris Mason :

Originally posted by @Jordan Johnson:
My wife and I are in the process of building a house that will hopefully be ready around November. At the same time, I would like to start my venture into real estate this year. What worries me is if I found a property and got a loan for it, would I be able to get a loan for our house later this year?

My wife and I both have excellent credit and good paying W2 jobs. We never had a late payment on our last house and sold it so it’s need paid in full. The only other loans we have are both our cars.

I’ve considered private lenders but I would like to completely rule out a conventional loan before pursuing any private lenders.

Being in escrow for two properties at once makes things difficult, but not necessarily impossible. The same lender needs to be doing both. It's doable assuming that is an REI friendly lender. How difficult will depend on if rental income is needed or not as @Andrew Johnson says. Assuming it is, it'll be tough for your lender to give a yes/no until they have non-hypothetical numbers to work with.

I did a cash out on a SFH, then bought 2 halfs (separate MLS numbers) of a duplex at the same time haha. I was using the funds from the cash out as the down payment for the other loan. It was also a 30 day close on the second lol.... it got little crazy at the end, but worked out lol.

great question for your lender @Jordan Johnson . While it is possible, they are going to look at your DTI, debt to income, ratio. Most banks will loan at a 1.25%+ ratio. You might want to talk with them about options. As in buying a duplex or quad using a FHA loan (loan down payment), live in one of the units for as long as needed to qualify for that program and then pursue your primary residence.

Thanks for the good info guys.

I won’t be needing the income from the rental to qualify for the loan for my house. I guess I’ll start looking for lenders now.

Does anyone know any investor friendly lenders in the Houston area?

@Jordan Johnson   I'd also look to paying off the two car loans.  If not doable anytime soon, sell and buy something cheaper for cash.  If you're serious about real estate, then removing 2 car loans from your credit should be a top priority.

I've had my 2000 Honda Accord paid off for 14 years now and it still runs perfect!