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The Caller Asked "Can I Rent My Current Home And Buy A Larger Home?"

By
Real Estate Agent with SAMSON PROPERTIES 0225018862

The quick answer is  "you may be able to rent your home, if you have enough equity. "

How much is enough? According to the lenders I've spoken with, the guidelines state 25% equity. 

So if you have a home and you've owned for quite some time and you have a good amount of equity your chances of renting are very good. The rental market is doing quite well in the Woodbridge, Lake Ridge, Manassas Virginia area.

Just imagine the possibilities! You could go from this starter home to your dream home!

 

 The rest of you may be asking why are the guidelines so strict?

The guidelines were put into place by Fannie Mae, Freddie Mac and Ginnie Mae to prevent people from purchasing a new primary residence and then walking away from their current home. In fact I just read a very good article on the subject and the term used to explain this was called Buy and Bail.

Click here to read more Buy and Bail 

The only way I know in the current economy that homeowners are able to take advantage of the move-up homes that are available is if you can qualify to carry both payments. Granted you would be getting rent money however the lender must be able to prove you can carry both the new payment and the old payment without benefit of a lease.

                   Don't hesitate to give Erick and Company a call to discuss all your options.

703-851-3085

     or contact me by email  

Would you like to search for homes in your price range right now in the Woodbridge, Lake Ridge, Manassas Virginia area? Just follow this link  SEARCH WOODBRIDGE AREA HOMES NOW.

Contact Peggy James or Erick Blackwelder  of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's 

 
      
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Note: Loan Officers feel free to comment below. The more information we can get homeowners on this subject the better. Have a super day!

Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Peggy, we're seeing that the banks now want a couple of months rental history in order to treat rental income as an asset.  So, it's kind of a catch 22. 

Aug 18, 2009 11:25 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Then there is the matter of the debt to income ratio and how much rent is counted as income..catch again.

Aug 18, 2009 11:33 PM
Peggy James
SAMSON PROPERTIES - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

Gabe thanks for stopping in to share with us what you are seeing in the Flordia markets.

 

Aug 18, 2009 11:35 PM
Peggy James
SAMSON PROPERTIES - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

Hi Sally and David,

True, as Realtors we've always had to qualify soon to be landlords with the Vacancy Factor (figure the home could become vacant worst case for several months) to make sure they could handle the payment.

Homeowners who could easily afford a move-up home with a solid credit worthy tenant and a lease for Fair Market Value that covers their current monthly mortgage payment are being restricted from buying. 

Hopefully this will loosen up soon.

 

 

Aug 18, 2009 11:53 PM