Can I buy another home as my primary residence if already own a home in the same city?
And the answer is…………………… Yes! Well, Maybe. You want to buy another home and, since you plan to actually occupy that home, you would like the lender to consider that new home a primary residence rather than an investment property right? Well if you don’t want to have to put significantly more money down and don’t want to pay a higher interest rate then that’s exactly what the lender would have to consider the new place as, a primary residence. With today’s rental market fetching the sky high rental rates that we’re seeing, many home owners are doing just that. Here’s what you need to know about whether or not you can actually pull it off.
With a home that is currently lived in, a buyer can purchase another owner occupied home but they must debt ratio (qualify) for both mortgage payments. There is an exception though.
The only exception to this is if they have 30% equity, documented by an appraiser who would also provide a rent schedule for that home. The lender can then use 75% of the appraiser’s projected rent as income if the buyer can also provide: lease agreement, proof of tenant security deposit clearing their account, and tenants contact info. If you’re among the rare home owners with 30% equity, you’re set. Well, maybe. There’s just one more hurdle to cross.
For the current residence, if an owner occupied mortgage loan has been completed within the most recent 12 months the only option you will have is to buy the next one as an investment home. Once it is 12 months past the owner occupied financing you can get another owner occupied loan for a new purchase.
If you happen to be fortunate enough to be in such a financial position, may I suggest for your consideration a beautiful home with a pool in gorgeous Summerlin Las Vegas?
Simply click on the image below.
If you, or someone you know, is looking to purchase a home in Las Vegas or Henderson, please contact me anytime for more information about our current market or the home buying process. I’m available, 7 days, 8 AM – 9 PM.
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Alan Taylor | REALTOR®
Prudential Americana Group, REALTORS ®
10777 W. Twain Ave. SUite 333
Las Vegas, NV 89135
Author: Alan Taylor