My family was supposed to move to another area for better schools, but we decided to stay put for one more year. We want to buy a home now and rent it for one year until we move in August 2019. I don't want to wait another year and risk being priced out of the market if I can afford to buy now.
My realtor is telling me we may need to get an income property mortgage since it won't be our primary residence, where the required down payment might be 25% and the interest rate will be higher. Does it make sense to take a mortgage like this if we will turn it into a primary residence in one year?
What should I do to get the best rate?
You’ll get a higher rate with that type of loan. You most likely could get a 2nd home mortgage for 10% down and a better rate.
Best to reach out to your lender!