Does Anyone Know How Much Affect Owning A Home That You Rent Out Will Affect...

United States
April 16, 2012 7:31am CST
you getting another mortgage? my credit is good and i will be moving out of state hopefully soon but need to get some medical bills down first and also either sell the house i own or rent it out then sell it. Our house went UP in value BUT we havent paid it down enough to make it sell for low enough and with realtor costs etc to break even when everyone around us is literally taking $40,000 off their houses worth to sell. If we rent it we will almost make twice our mortgage payment therefore it would pay for itself and be income. so having would having a house as a rental hurt me getting a mortgage because they would see it as having another debt or would they see it as an income? i mean people all the time have rental properties so they had to do it somehow. i cant wait for the economy to bounce back fully and like i said i have medical bills and everything i want to pay off so i dont have other debt when i move so that way if i do have the house it will be almost the only thing we have. anyone know if it will be a problem? im not rich so its not like if i wasnt renting it out i would be able to have a couple of houses and yeah i know that nothing can gaurentee that i will always have renters but i figure i can set aside the extra i get for those periods its rented to cover the vacant times. the next house i get will be around the same value so not a huge payment either. to me i would think it would be a problem but i figure i would ask since its my first house and my first time with selling or renting out. and renting at the new location is NOT a possibility. i have a pit bull dog and they are usually never accepted anywhere that allows pets and really dont want to waste my money renting at twice the price i would have a mortgage at.
1 response
@peavey (16936)
• United States
17 Apr 12
Right now, it's a debt. There is no way to guarantee an income from it until/unless you actually have it, so the bank or lender will view it as a debt. How much difference that makes in obtaining a mortgage will depend on how much other debt you have and how much your income is. They will not take into account possible future income (rent money) because at this point it doesn't exist.