All Forum Posts by: Judith Farhood

Thank you so much @Paul Defngin, you gave me so much clarity!! I really appreciate you took the time to answer me with so much details!!

I have been living in my house for over 2 years now. I want to buy a new house (in a more convenient location for my family, but only 30 minutes drive from this house) and rent this house. The market is good for house rental in my area, so this is not a concern. This would be my first investment property!!! But for now I am planning my budget, mortgage/HELOC, and logistic strategy.

My rental management agent told me that the house need to be vacant to be ready for rental and visit from potential tenants. Yet, I need to prove that I have rental income from this property to qualify for a new mortgage, as only my pay-stubs won’t be enough to qualify me for a 2nd mortgage. I don’t know how and where I could live without spending a fortune with 2 kids and pets for a couple of months or so.

Question 1: How do I do the transition then?

Also I need to start shopping for this 2nd mortgage and an HELOC (for down payment and potential renovation). My research seems to say that Credit Unions or virtual-only lenders would have the best deals overall (lower interest rates, lower closing costs, and less hidden fees).

Question 2: what does it mean to shop for mortgage/HELOC in practical term in my situation? Could some lender grant me a mortgage just based on the projection of the rental income and still give me a good deal?

Thank you in advance. I appreciate all your feedback and ideas!