Lenders typically view "departing residence" scenarios differently than standard purchases.
Buying a second home while keeping your first as a rental is a common way to build real estate wealth, but it requires careful financial balancing. You must prove you can handle both mortgages while preparing your first home for tenants. 🏦 Financing Your Second Home how to buy a second home and rent the first
: Some lenders allow you to use up to 75% of your first home's projected rental income to offset that mortgage payment, helping you qualify for the second loan. 🏦 Financing Your Second Home : Some lenders
: You will likely need "reserves"—liquid cash (often 6 months of payments for both homes) tucked away in a savings account to prove you can handle vacancies. gross income) to be below 43% to 45%
: Lenders generally want your total DTI (all monthly debts vs. gross income) to be below 43% to 45% .
Before moving out, you must check for legal and contractual hurdles. How to Buy a Second Home and Rent the First - HomeLight