This is a very creative way for homeowners to take advantage of the current housing crisis. As the number of Foreclosures hit the market, the value of properties continue to drop, at the same time the demand for rental properties continue to rise, so market rent increase. There is a certain percentageof renters who are willing to pay extra to live in Single Family Dwellings instead of Apartments, therefore the number of days on the market is very low. The homeowner can at this stage purchase a bigger house at a discount. Please stop by Markita's post andleave a comment.
How to Rent Your Current Home and Buy a Bigger Home
So you are ready to buy a single family home in Virginia or Maryland, but you can't sell your current home...
Here's what you can do. You can rent your current home in the DC Metro Area for positive cashflow (in many cases). Look at this chart provided by Peggy James of Exit Realty. Due to BRAC in this area the rental market is moving at a brisk pace.
How will renting your home affect your mortgage qualification?
Simply stated, the monthly mortgage payment will be counted as a debt along with the "new" mortgage payment. Obviously this will not work for everyone. But if you are a homeowner looking to move up and your current residence is underwater or you would prefer to rent the home, contact your FHA and VA Lender for custom mortgage solutions. We provided flexible solutions to help you buy your dream home.
Here's a quick example of a recent client scenario: Mr. and Mrs. Buyer purchased their townhouse in 2002 and have never been late on their current mortgage. They recognize the opportunity to purchase their home in today's market with "discount" home prices and low mortgage rates. After review they could sell their townhouse and breakeven or they could rent their townhouse and wait on values to increase along with collecting positive cash flow on a monthly basis.
Mr. and Mrs. Buyer will not get credit for the monthly rental amount on "paper". They will carry the current mortgage payment in the qualifying numbers, but still are able to buy the home of their dreams.
If you have good credit and income you can purchase your dream home while renting your current home. Your single family home is just a phone call away. Contact Markita Aldridge-Woods at (703)497-3936 to create your financial roadmap to your dream home in Virginia or Maryland.
Weststar Mortgage is located in Woodbridge, VA. We are local and accountable. Our underwriters (decision makers) are in the building. What this means for you is if you need flexibility or are a little outside the box, we can help.
Areas Served: Albuquerque Metro/ Algodones/ Bernalillo/ Cedar Crest/ Corrales/ Edgewood/ Los Lunas/ Los Ranchos de Albuquerque/ Placitas/ Rio Rancho/ Sandia Park/ Tijeras