First Rental Property

[Caleb Crump]

Hello, 

I am wanting to move out of my current home and rent it out. I plan on purchasing on a new home with a new mortgage. 

My question is... am I allowed to use potential future rental income from my current home so I can qualify for another mortgage? The area is nice and there are tons of rentals already so I have a very good idea of the market rent. 

Thanks!

[Edward Stephens]

Hi @Caleb Crump!  The best way to go about this is to link up with a lender and explain to them what you’re wanting to do. They’ll likely want you to have an executed lease in place that they can show to underwriting in order to count that rental income toward your debt-to-income ratio.  You can do this by executing the lease with your tenant a few weeks before closing on your new home, but with the tenant’s move-in date being a few days after you move out of your old home.

You’ll also want to find out if you can qualify for a home at the price you want without selling your existing home.  

Feel free to DM me if you want a lender recommendation or if you have other questions about this topic.