Mortgage Question, moving from duplex to single family

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Mortgage Question, moving from duplex to single family

Paul D.
Milford, CT · Member since 2017 · 15 posts · 2 votes

Hello everyone, here is my situation.

I currently live in 1 unit of a 2 family home that I own.  I also own a single family home and a condo that both have a good rental history.

I want to buy a single family home to move into.  Can I use future estimated income for the unit that I'm currently living in to help qualify for my next mortgage?

Thanks for your help!

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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
7y

@Paul D. the above answer will change very drastically if you are trying to get an FHA loan while already having a current FHA loan. If you could let us know what loan types as I mentioned previously that would be significantly helpful.

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    7y

    @Paul D. the answer here is going to be dependent on the loan type you are receiving....and maybe even the loan type you have on your current home.  Do you know those answers by chance?

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  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
    7y

    @Paul D.  This will depend on the particular lender that you use, but in most cases, yes, the income from your current home (the unit in the duplex where you're living) can be counted with a signed lease and evidence of depositing the first month of rent and/or security deposit.  

    75% of the lease amount will be counted to help offset your mortgage payment for that property.

    That should be one of the primary questions you ask a loan officer when getting pre-approved.  It will certainly impact the maximum amount you'll be able to qualify for. 

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    7y

    @Paul D. the above answer will change very drastically if you are trying to get an FHA loan while already having a current FHA loan. If you could let us know what loan types as I mentioned previously that would be significantly helpful.

    1Reply
  • Paul D.
    OP
    Milford, CT · Member since 2017 · 15 posts · 2 votes
    7y

    Thank you for your replies!

    All of my properties are financed with conventional mortgages (no fha).  I am not opposed to getting an fha mortgage for my next property, just not a big fan of mortgage insurance if I can avoid it.

    It would be difficult for me to have a signed lease for the unit I currently live in, as I wouldn’t be able to get a tenant until I moved out.  That is my big question, will they (the mortgage companies) count an appraised rental value as income before anyone even moved in?

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