Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

Wanting to buy a house with current house rented.

Author Message
Icon Mini Profile rlsrlj





Joined: 23 Jan 2008

Posts: 7

3.88 Dollars($)
Post Posted: Fri Feb 25, 2011 3:20 pm    Post subject: Wanting to buy a house with current house rented.
Like 0
Dislike 0

My parents are wanting to buy a house with little or no down pmt. They still own a house that has been rented. Can you tell me how much of that rental income will be counted? The payment on the house that is rented is about $500.00 more than the income they receive as rent. What products do you recommend to avoid PMI? Thanks!
Icon Mini Profile jveenstra
jveenstra
Community Expert
Community Expert

best lender badge

Joined: 10 Nov 2008

Posts: 1310
Location: River Edge, New Jersey
274.62 Dollars($)
Post Posted: Fri Feb 25, 2011 5:11 pm    Post subject: Rent
Like 0
Dislike 0

They can use the rent if the mortgage balance on that property is 75% or less than present value if new mortgage will be FHA.

If new mortgage will be Fannie Mae, needs to be 70% or less.

_________________
John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
Icon Mini Profile brian1
brian1
Community Expert
Community Expert

best lender badge

Joined: 14 Jun 2008



Posts: 448
Location: Northern California
15.61 Dollars($)
Post Posted: Sat Feb 26, 2011 12:52 pm    Post subject:
Like 0
Dislike 0

No avoiding PMI without 20% down - as far as the rent more than likely the full payment will count against them when they go to qualify
Unless they have the equity mentioned above or a two year history of being a landlord

_________________
Licensed Broker 50 states
http://www.aimwithfocus.com Live Chat available
Need quick advise email or PM Glad to help
Pre-approvals www.applyonlinesecure.com
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights

Bookmark this page

Helpful References

Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators

     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools

Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community

MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards

Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (252)











We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 0.054 seconds.