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Should I rent out old house so I can get a new house? confused

Hello, I would like to either sell or rent out the home I'm in now and buy a new home that is a bit less then what this home costs. It also has an inlaw apartment that I could rent out.I bought this house in February of this year. I became unemployed at the end of May. My husband is paying the mortgage.I would just buy a new home under my husbands name but he doesn't have good credit. I was told by the bank that I would have to do the application all over again. Which means I won't get approved because I'm on unemployment.So, what are my options? Is there a bank that would give me a loan based on the fact that I already have a loan? Should I rent out this house to show income so that I can get the new house? Would the fact that I could rent out the inlaw apartment in the new home make any difference?I'm so confused! Thanks for any imput! by lccplpa from Lancaster, Pennsylvania. Oct 6th 2009 Reply

Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

You are probably going to have to wait until you are employed again. Even if you rent your current home, you will only be able to use 75% of the renatal income. After that the underwriters will net the expenses out of the rent, so you probably wont be able to show much of that income. In addition, documenting that income might prove difficult sine there is no history of receiving it. It would not show up on previous tax returns.

Oct 6th 2009
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