Comments on: Will my gf's home loan work against us if we buy a house together and she rents hers?

By: Quickspic

Quickspic — Wed, 02 Jul 2008 15:37:14 +0000

The way it works is that if you have good credit they will loan you up to around 30% of your income towards your mortgage payment.

What I mean is if you make 5000 a month. then you would qualify for a loan with a payment of 1500 a month. Now lets say she already has a payment of 1000 a month she would only qualify for a loan of 500 a month.

Now lets say you have her place rented and have a written lease. Then they take 70% of the rent and add it to your income.

Example I own a condo that I rent for 600 a month. My payment is 320 a month on the condo. The math looks like this.

600 X .70 = 420
420 - 320 = 100

In this case they add $100 a month to my income.

Another one of my rentals rents for 675 payment is 420 looks like this:

675 X .70 = 472.5
472.5 - 420 = 52.5

They add $52.50 to my income.

Most people are actually upside down in there houses and have a small amount subtracted. I never do a deal that I will not make money on using the banks formula because I am trying to accumulate more rentals constantly.

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By: Landlord

Landlord — Wed, 02 Jul 2008 15:24:15 +0000

It will effect your credit/debt ratio. You should get a renter in there first, with a lease that is at least 1 year.
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By: chante

chante — Wed, 02 Jul 2008 15:01:56 +0000

It will if the tenant does not pay, and if you cannot cover both mortgages.
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By: Marie G

Marie G — Wed, 02 Jul 2008 14:56:19 +0000

If you submit a copy of a signed 1-year lease for her house with your loan package it will not be that big of an issue. They base loans off of debit ratio and the lease will be considered as income. I have done this in the past with buying rental properties. They key is to have the copy of the lease in from the very beginning. You can get a lease from Office Depot or Staples. Just get “pre approved” before you put a contract in on a house. Your real estate agent will know how to do the pre approval (include the copy of the lease). Then you will know for sure. Good luck!
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By: David Beasley

David Beasley — Wed, 02 Jul 2008 14:50:58 +0000

No!

If…

1) she makes enough $ to qualify with both payments OR

2) if not… you get a tenant (with signed lease AND deposit check) to offset that mortgage payment

Get qualified with a mortgage professional today who knows FHA/FNMA/FHLMC rules (these are the lenders with lowest rates/lowest down payment). You will need your paystubs/w-2s/bankstatements, etc.

I closed a handful of these kinds of purchases last month. One buyer bought a bigger/nicer house down the street, had a LOWER payment, rented his other house to his daughter (family nearby) and put ~$1500 (appraisal, earnest, etc) into a house with $25000 in built in equity! You can too!!

Best of luck!
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Mortgage professional.

By: duh face

duh face — Wed, 02 Jul 2008 14:47:15 +0000

no clue but congatulations on moving in together hope it works out! im about to move in with my boyfriend in couple of months.
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By: Doctor Deth

Doctor Deth — Wed, 02 Jul 2008 14:45:58 +0000

probably, unless you buy a house that falls a good bit lower than you actually want - will you even be able to get enough rent to cover all the first houses' costs" if you have that house, why not live there until the market recovers, then sell and upgrade - and what happens if you break up? - then she has two houses she's responsible for - could lose both
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