using primary residence as potential rent towards second home

[Ker Xiong]

Would it be possible for me to use my first home (primary) potential rent income as qualifying income towards a second home?

[Jon Holdman]

At the very best the lender would want to see a signed lease. Some lenders now require the rent for any rental property to appear on two tax returns before they will consider that income.

If you're thinking of purchasing another home, and using the rent you MIGHT get from the one you have now to help qualify for the new loan, then, no chance. You will have to qualify for both loans based on your existing income.

A common trick in the not-too-distant past was for someone who was about to have a problem making the payments on their existing house to buy a new, more affordable house and to claim they were planning to rent the existing one. Lenders accepted this for a while. But what often happened was once the new loan was closed, then borrower stopped making payments on the first house and let it go into foreclosure. Lenders caught on to this trick. So, now you must be able to qualify for both loans without needing any potential rent income.