Can I rent my current home with an existing mortgage, and still get a second house?

Answer

You can get a mortgage for a second house in this situation, but you must prove to the lender that you have the financial ability to carry both mortgages, as well as make any repairs on the rental home.

How much equity do you have?

Much depends on the amount of equity you have in the dwelling. If you don’t have at least 75 percent equity in the initial dwelling, you’ll need to prove you have a minimum of six months cash in reserve to pay principal, interest, taxes and insurance on both houses.

Find a renter

If you don’t have this financial ability, you should have a renter who has signed the lease and given you a security deposit to show the lender prior to applying for the mortgage for the second house.

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