Would getting a new primary home loan every year be a problem?

3 Replies

My understanding is that it is essentially possible to get a new primary home loan every year if you buy a house, live in it for a year, then, once the year is up rent it out and buy another place, do the same thing over again and so on. I'm wondering if this would eventually raise any red flags with lenders or if they would even know the type of my other loans if I went with a new lending company each year? I am planning to move into and live in the house each time I buy a new primary residence so I'm not looking to skirt any rules, just wondering if this is something that would cause issues assuming I am staying with in the rules.

@James Elden yes, it is possible and a great, simple plan. I used a version of this as an easy way to get started. (I did not do this every year, much slower)

You don’t need to switch lenders. You’re doing everything correct so there’s nothing to hide. As you grow you might run into some issues with ratios, especially as those change at 4 properties and 6 properties, but you’ll cross that bridge when you get to it. For now, just get started on this plan.

When I moved and rented out my first home, the new lender said I needed to qualify to cover both mortgages myself, or if there was already a signed rental agreement I needed to provide the entire agreement along with my loan application to show that mortgage was being covered.