Can I rent my condo out, buy a house and carry 2 mortgages in my name?

Question

I bought my condo a year ago and way overpaid for it. My boyfriend and I are looking to buy a house together and selling my condo is not an option right now or else I stand to lose quite a bit of money. I was wondering if I would be able to rent it out (probably losing money each month which I think I can claim as a loss on my taxes) and buy the house with my name on both mortgages. I live in MA if that matters any.

Answer 1

You can try--its up to the mortgage lender if they feel that is an acceptable risk to them (income to expense ratio).  Can you afford to carry 2 mortgages?  (if your renter should move out or default etc).  That's the question. (as well as pay taxes & upkeep on both residences).  If you can....then its just if the mortgage company thinks so!

Answer 2

It depends on your income .  Does the bank believe you can carry 2 mortgages?

Answer 3

If you have the income and the credit rating, as well as the down payment and closing costs for the new property, you can.

In calculating income, they will NOT credit as "income" the amount you charge for rent.  If you have a written lease from a tenant, they will add 85% of the year's rent to your salary and other income, then calculate 30 to 43% of that to determine the max mortgage repayment you can handle between the 2 mortgages.  (The percentage varies by bank and your debt ratios -- if you have zero debt, loan repayments, etc. they might, tho not likely, go as high as 43%.)

Answer 4

yes, you just have to qualify.