If you are planning to buy a home and prefer to keep your current house as a rental property instead of selling it, the first thing you have to do is talk to a trusted loan officer. Even if you already have a mortgage, you may qualify for an additional mortgage, large enough to allow the purchase of a desirable home. In such case, you do not have to fulfill the requirements below before you can buy.
However, if the maximum loan amount that you are pre-approved at, would not get you the home of your dreams, you have to find a tenant for your current house in order to offset its mortgage payment before you can buy a new one. If you work with Movement Mortgage, for example, you have to present the lender with a signed lease agreement, a security deposit from the tenant, and sufficient savings showing six months worth of payments on both mortgages. Fortunately, you do not have to show prior experience as a landlord, or tax returns with rental income, or even equity in your current home.
So, one way or another, you CAN buy a new home and rent your current home. Now that you know that you can, the next question is, SHOULD you buy a new home and rent your current home? You have to consider a lot of factors, including whether being a landlord is right for you. I can help you and guide you. Stay tuned for my next post on landlordship in Georgia.