I have a home that is now being rented out. Currently I am trying to get the mortgage modified. I am current on all my payments and want to buy a new home. Can I do this or do I have to wait til my loan modification is complete?
No I have never been behind or missed a payment on my current home loan. I have been renting it out for the past 6 months and I make enough money to cover both mortgages without the rental income.
I would wait until the modification is completed before applying for a new loan for another property.
If the modifying company does a credit check and see any new mortgage or new mortgage company inquiry they will probably refuse to grant your modification.
Obviously you don’t financially need a modification.
One has nothing to do with the other on the face. What WILL affect you is:
1) Do you have the income to afford both mortgages? The rented out home will need to have 2 years of rental income be count.
2) Did you have to miss any payments to get the modification?
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I would wait until the modification is completed before applying for a new loan for another property.
If the modifying company does a credit check and see any new mortgage or new mortgage company inquiry they will probably refuse to grant your modification.
Obviously you don’t financially need a modification.
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As long as your payments are current and you are not using the rental income to qualify, the status of the loan on the house you are leaving really doesnt come into play on pre-qualling your new purchase. Some states, however will issue you a 1099 for the forgiveness of debt on the principle reduction, so there may be some income tax implications down the line. You’ll need 6 months’ reserves for each property as well. Hope that helps
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I thought you could only do a modification on your primary residence. I would hate to be caught in mortgage fraud.
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