Buying another primary residence

[Christian Dornbirer]

Hi, I’m 26 years old and my wife and I are figuring out how to get a second house in 2024. We purchased our current home in February 2021 while interest rates were very low on a USDA loan. Our goal is to do a few updates, find a tenent next year and move into another primary residence.

I’m a bit unsure of how to go about buying the second property. How do lenders look at a situation like mine and is it typically a straightforward process? 

[Mark Mazzucco]

Quote from @Christian Dornbirer:

Hi, I’m 26 years old and my wife and I are figuring out how to get a second house in 2024. We purchased our current home in February 2021 while interest rates were very low on a USDA loan. Our goal is to do a few updates, find a tenent next year and move into another primary residence.

I’m a bit unsure of how to go about buying the second property. How do lenders look at a situation like mine and is it typically a straightforward process? 

 Pretty straight forward process! Similar to what was mentioned above... You would essentially use the rent you get from the lease that you are going to set up to offset the liability of the mortgage you currently have...so you'd be good there! I know John mentioned you'd need to ensure you meet the terms of the loan for USDA, but since you're moving, that is okay since you already lived there as a primary! 

Since you are buying a new primary there's not much to worry about, depending on your income level you can still qualify for 3% down conventionally and then another option you can look at 3.5% down with FHA...Lastly you can always do standard 5% down if those options don't make sense.

I actually just closed on a home for someone in Columbus, Ohio that had a similar situation as you...so happy to give you any advice you may need!