Hello
I am seeking to buy an owner occupied home. I already have 3 properties. Have to relocate due to job. And I am wondering what I can possibly qualify for.
My main confusion is this 75% rule. 75% of rent can count as income. So how is it
being caluclated? Is it:
1) 0.75xrents-mortgages = X If X<0 then it is being added to liabilities/payments. If X>0 then X added to income Then possible loan is calculated.
or
2) Rents are added to income. All mortgages are added as liabilities. And then everything is calculated.
Those are different scenarios and very different results.
I would also appreciate your insight on my current situation.
I have 3 properties.
1) 300K value. 50% equity. Purchased 3.5 years ago. 1000 a month (everything) Primary residence but can rent out for 1500.
2) 300K Value 50% equity. 1100 a month (everything) purchased 2 years ago. Renting out for 1500
3) 300K value 25% equity. 1300 a month (everything) purchased 8 months ago. Renting out for 1500.
My income is 100K. So I have about 3400$ in mortgages/taxes/insurances and 4500$ income. (3000$ now and 4500$ once rent out my primary residence)
No loans. CC and auto paid off.
Questions:
1) What approximately I can qualify for. Lets say scenarios with 50, 100 or 150K cash on hand.
2) Am I eligible for FHA loan? Previous all were conventional. (Owner occupied + 2 investments)
3) Should I rent out my primary home and move first to make it fully rental and then apply for a primary residence home.
Read more: Buying owner occupied. Already have 3 investment properties. Loan options?
