Expert: liznarr - 6/25/2010

Question
i own my home, i no longer have a morgage to pay. i want to buy a new home. my question is do i have to put my home up for rent after i move into the new one until i find a buyer for the old home.

Answer
Hi Latanya,

Whether or not you will be required to provide a rental income history on your current home to qualify for a new loan is a decision your lender will make.

If a Purchaser is strong enough, both credit and income-wise, to carry the taxes, insurance and upkeep of your current home (without providing proof of rental income) and in addition to the mortgage, insurance, taxes, etc., on any new home you purchase, then this would not be an issue.

If a Purchaser needs to provide proof of rental income on a current home in order to qualify for a new loan, your lender will let you know.  Be advised that some lenders might require at least a 12-month HISTORY of rental on the property before qualifying.  I know, the preceding sentences seem to be ambiguous, but just trying to clue you in as to what you “might” hear from a lender, depending on your income and credit score.

You certainly sound like a very responsible person, already having your current home paid for.

Not know anything else about your situation, and not being a mortgage expert, this is a question that you should address with a lender.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth