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Should
I Turn My Home into a Rental Property? |
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Good day!! These days a lot of people
are seeking options to purchase a 2nd property to move into but would prefer
not to give up their current property. The Banks are not making this a very
easy process for qualifying with their rules for using rental income and
rental property expenses. We have multiple lenders who will make easier for
clients to purchase a new home with a more common-sense approach. Below are just a few benefits
to turning your home into a rental property.
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For this Illustration, the
Bank’s are required to use only half of your rental income, so $1,000 and
100% of the expenses, so adding the mortgage, property taxes along with $100
for heat. Our lenders typically allow for an 80% use of rental income which
in this case would produce an increase to your income. As you can see, with
the Bank’s calculations qualifying amount would only be $465,000 vs. $580,000
with our more creative lenders. Subject to lender/insurer approval. Qualifying rates are subject
to change. |
