does renting a property helps optain another mortgage loan?

yayacz13 · Joined: 17 Apr 2008 Posts: 1 1.32 Dollars($)

My son ownes a townhouse and his trying to sell it. It is being rented for below the mortgage payment to his brother that will rent it till it sells. our question is can my son buy a house with his girlfriend eventhough he owes this townhouse. he can prove it's being rented.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi yayacz,

Welcome to the forum.

Whether you will be approved for a mortgage or not depends on so many things like your credit report, employment history, your present debts. So your son will have to decide can he afford a new mortgage even though he owes one now?

You can get free consultation from the rated lenders of this community to know if you can get mortgage now.

Feel free to ask if you have any further questions.

Best of luck,
Larry

evolovik26 · Posted: Fri Apr 18, 2008 6:52 am Post subject:

Usually if the property is being rented you can use 75% of rents to offset the morgage payments on that loan. Meaning if you pay $1000 for that house and are renting it for $1000 you can subtract 75% of that ($750) of the mortgage payment bringing it down to $250/mon.
After that you whould have to qualify with that obligation for your new mortgage.

gmakerley · Posted: Sat Apr 19, 2008 6:31 am Post subject:

eugene is correct, of course. yes, indeed, rental income is considered for a property that is being held while seeking a new property. maintaining proper records is essential - tax return showing the rental property is imperative, and a lease, as well.

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