It all depends on the equity position of your departing residence. If you do not have 25% equity you will have to qualify with both housing payments (to prevent a "buy & bail" situation). If you do have the equity the lender can use 75% of the projected rents (lease agreement and copy of deposit is preferred) to off-set this liability. Feel free to call me or email me for more details.

Brian Simantel
Broker, Superb Mortgage and Real Estate
brian@superbmortgage.com
619-316-7044

You may need a lease agreement and a contigency clause in your purchase contract.
You can call me if you need help!

All great answers. I like Brian Simantel's answer regarding how much equity is needed and obviously knowing how much income is actually valid is very important. I heard it was 30% equity required so talking with a professional mortgage broker to get details is crucial. Especially in this market, you want to be careful what you invest in and how much. Lenders are stringent but for good reasons!

First, the fastest things to do is pull your credit as well as get an idea of what a new payment you would be comfortable with. If you we can qualifiy you with both payments, then we are golden. if we can't we can look at if you have an equity position in the condo and if we can use potential rental income to qualify. There are a lot of correct statements below, but start with the path of least resistence and see if you can qualifiy for both house payments, if so we can get you out shopping for a house asap. Thanks let me know if I can be of any help. I am licensed in CA.

Hi Pablo,

I just wanted to clarify the answers below regarding counting the "projected" rental income when calculating debt to income ratios for a new loan... it's true that only 75% of the ACTUAL rental income will be able to count as income. What has not been mentioned here is that for it to count as income, the property has to have been rented for a period of two years. If you are looking to rent a property for the first time, not one bit of the "projected" income can be counted when calculating debt to income ratios.

Best of luck!
Tara

Tara Steinke
Solant Real Estate Advisors
619-384-6014

It may be better that you buy the new home in your name. Once you get married, you will have to deal with the fact that California is a community property state. Therefore, unless you're going conventional, her debt becomes your debt. So, I always encourage all unmarried couples, if possible to buy independent of one another. For several reasons, first and foremost if something unforeseen happens and your credit suffers, it can take you both down. I would be happy to go over the pros and cons of each option with you guys.

Best of Luck!

Mr. Chavarin,

It all depends on the type of financing you will be looking at and the current debt to value of the property. As my colleagues mentioned to you on their response the current financial situation of the condo will be a qualifying factor and if you are looking at FHA financing we have some additional variables that would be best answer by your trusted Mortgage Advisor. If you don't have one, Alfonso Delgadillo from Prime Lending is my referral to you. He is my prefer lender and he deals directly with all of my clients. Which some are in the same financial situation you and your family is in.

Best Regards,

PM.

Hi Pablo,

You will be qualifying without the condo, but your fiance will have to prove she's got the property under lease with a tenant, if she owes more on it than it's current market value, even if she puts 20% down on another property. A lender will want to know that she's not going to walk away from it when she buys another property, so it really depends on what's going on with the condo. If the condo is under water, she may have to rent it out for 12 months before buying another property.

If the condo has equity, she'll just need proof of rental income so she doesn't won't have to qualify for both properties. As Brian said, a lender can apply 75% of the projected rent.

Owning a rental isn't terribly difficult if you have a good property manager. Even with one unit, there's plenty of available information for landlords, and I do advise having a good real estate attorney on hand for legal questions and issues. A consult with an attorney could be the best money you ever spent. Judges tend to side with tenants, so be sure everything is done to the letter of the law.

Let me know if I can help with anything else, or if you'd like some good lenders to talk to.

Warm Regards,

Cory
REALTOR
Independence Realty
(619) 825-6421

Hi Pablo,

Certainly the debt of the condo will factor into your ability to afford a new purchase. My advice is to speak with a Mortgage professional as soon as possible to know what your options are. Since you are planning to rent the condo, they might want some data on what the condo will realistically rent for. Hope this helps!

Let me know if I can help in any other ways.
Jeannine LaChance
REALTOR
DRE License #01522123
Mobile: 858-442-3179
Email: jlachance@coldwellbanker.com
Coldwell Banker Residential Brokerage
16363 Bernardo Center Drive
San Diego, CA 92128

Simply put, if you have at least a 25% DP, great combined credit (700+), Good employment history, 65% LTV on both properties, a combined income with a great DTI ratio you're welcome players in anyone's game.

We specialize in distressed property (foreclosure, short sale, probate) acquisition, rehab, resale, buy & hold to rent/lease with a positive cash flow for investors. We are a one stop shop, turn key total solution, general contractor, property management and investment real estate brokerage company.

We are investors who partner with other investors who want to build a long term income producing property portfolio that will garner lifetime income in real estate investing.

Brian's answer is the most accurate but in the end you will need to speak directly to a lender/loan officer who can qualify you for the purchase of your new home while taking into consideration the circumstances of your rental condo. Speaking with the lender now (way out in advance of purchasing the new home) will be the best thing you do in planning and preparing for your unique situation. In the meantime, if you guys need a property manager for the rental condo, please let me know: http://www.yelp.com/biz/jeff-larabee---innovative-realty-san…

The rules have changed and it is harder to own a rental, particularly if it will be your first rental, now. The person that can give you the best answer is Karen Barberio with US Bank. Her number is:760-720-2449 or 800-515-6250. She has helped several of my clients accomplish this very thing recently. It does take some determination on your part too. Give her a call, I think you will be happy with the results. If I can help you find a home, please feel free to give me a call too.


Let me know if I can help you in any way!


Joan Wilson (Realtor, SRES, Ecobroker, Certified REO and Short Sale/HAFA Specialist)


California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
JoanWilson@prusd.com
License # 01341483

It is my Goal to Increase the Success and Profitability of Those I Serve

It would be wise for you to speak to a mortgage professional to evaluate your entire financial profile. You may need to have the condo rented before you qualify yourselves to purchase. Doing all of this ahead of time will help you to understand your options.

Kind Regards,

Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
760-644-1562