Loan Qual. - Seasonal Rental Income

[Dan Curry]

Hi All,

In looking to do some research I've looked at my options for some future deals and am curious on whether or not my thought process is accurate/some open questions. I've done a good amount of research of the topic but I might have outdated information at this point.

Current Situation: Own a SFR with 20% equity, have seen large price appreciation in last 3+ years; it's since doubled to an est. 45%. Likely can achieve rental income to cover or be cash flow positive on current mortgage if I hold, but no documentation of rental history.

Question(s): Looking to either keep or sell (depending on cash needs) current primary residence to purchase new primary residence. I'd plan to turn the departing property into a rental (if kept) and purchase new target home as primary residence. Can high equity level still justify lender to consider rental income on departing property to offset the current mortgage with no rental history will this be an issue? Have seen too many ifs/and/or to understand at this point across the requirements.

Secondly - my target area would be an area of high seasonal rental rates. In looking to qualify for FHA or conv loans to purchase the target property, is the market rent @ 75% of appraisal likely to be calculated based on/with consideration toward high seasonal rate or just/averages/non-season comps? Currently looking at either zoned duplex or SFR with separate living units. Home values tend to be high in the area due to the tourism, rental income etc. but typically the high seasonal rents can cover the full annual mortgage. IF not using the seasonal rent, it of course changes the situation considerably.

Its not likely that the entire property would be cash flow positive in Yr 1 but would hopefully be close to neutral with the ability to live in a more desirable location. 

Thanks in advance.