We have about $490,000 loan left on current home (24 years left on 30-yr fixed). We are thinking of upgrading into a slightly bigger home in $1 million range, will put 20% down. However we want to keep it current home & rent it out since we will likely break even on it. I'm told that for mortgage, they only consider rental income if you've been renting for atleast 2 years.. so that income will likely not be considered when we purchase the home & get the new loan. I'm a single earner with 200k base salary. Rest of my income comes from bonus (approx 30k per year) & RSUs (approx 80-100k per year). I realise the 2nd mortgage will spread us thin when the first home is unoccupied, but we save a significant portion of our take home today, so that should not be much of a problem when it happens. Would I qualify for the additional mortgage?
Talk to a mortgage broker
You should. It may take some unique underwriting for the new rental. But if you have strong credit and no other debt, a mortgage company should be able to work this out.
You will easily get approved. Its subprime days again and mortgage bankers will approve you with your salary range. I have a 1M loan and they approved me of another 2m just making similar to what you make in Seattle. So its easy these days
Also are you trolling? Aren’t you Satoshi? You should be able to buy some regional bank by now. :-)
Lol I wish! Even if I was I don't wanna tell 😂
If you haven’t considered it, you can appraise current home and boost your assets based on your ownership. Perhaps that will count for a fair bit of your net worth for 2nd mortgage
Find your monthly credit line. Then subtract the mortgage etc. And you will know how much mortgage you can afford pm. That will dictate home price, down payment and loan options.n
Ask a mortgage lender. Not sure why this is a question for blind :)
OP requires a 3rd party to do thinking for him.
Banks are in on the bubble. They will loans you millions with very few questions. Long as you are cool with it they need money off their books fast.
2nd mortgage on your current home - Definite Yes 2nd mortgage on the new purchase - very hard to say, need to do some detailed calculations
Why don’t you ask a mortgage officer?