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Getting two mortgages, is it possible?


               
2011 Dec 8, 10:14am   7,158 views  17 comments

by cksv   follow (0)  

Ok now that I've removed that silly 3 post lock...

I am currently a renter and am looking into buying two properties. One immediately and one in a year. I plan to purchase the 1st condo and live in it for a year before placing it up for rent. At that time I'd like to purchase another condo and live in it as my primary residence. Can I get a standard mortgage on both of these properties or will I be forced to a higher "investment" interest rate?

Condo #1
Would like to buy now.
Cost $235,000
Will rent out in 1 year for $1900/month.
5% Down

Condo #2
Would like to buy in 1 year.
Cost $400,000
Will live in it as my principal residence at that time.
20% Down

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

#housing

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1   swebb   @   2011 Dec 8, 11:07am  

you sure you can get $1900/month for a place that costs $235k?

HOA fees?

I don't blame you for wanting to buy it if you can get that kind of rent.

I'm no expert, but my understanding is that the bank will be likely to discount or not count the rental income unless you have some track record. Even without the income, though, your debt to income is probably within range.

I do know someone who did exactly this (3 properties over the course of 4-5 years), but had some difficulty qualifying for the 3rd property.

2   cksv   @   2011 Dec 8, 11:11am  

Here's the property: http://www.redfin.com/CA/San-Jose/20-Ryland-Park-Dr-95110/unit-306/home/559072

Rents in that area on Craigslist for a loft are around $1900. The HOA dues are $300 a month.

3   SFace   @   2011 Dec 8, 12:16pm  

cksv says

Can I get a standard mortgage on both of these properties

Yes

cksv says

My income is $103,000/year. Will I qualify for both of these mortgages when the rental income is added?

Very close to underwriter's standard depending on downpayment, depends where rates are later. If rates go up, it may be problamatic but I say yes

4   Patrick   @   2011 Dec 8, 12:25pm  

cksv says

Ok now that I've removed that silly 3 post lock.

Sorry about that, but it's necessary to keep spammers from posting.

Think I should switch to some other way, like asking people a really simple math problem?

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