I am thinking about renting the house that I own. I am considering buying a new house with no money down.?

Here are some options for you. 1) You could refinance your house for more than the current mortgage on it, and use the additional cash as a down payment on the new house. 2) You could buy a new house from a seller who is willing to lend you the down payment, if you can find such a seller. 3) You could borrow money for a down payment using other collateral, for example, stocks, bonds, or mutual funds.

However, you will need to have substantial income in order to qualify for a new loan in addition to your old loan, and if you have never tried being a landlord before, you may not want to take on that burden. You may be better off keeping you life simple and just selling the old house to buy the new one.

Beings that you already have a primary residence when you go to purchase another house you will be taking a second home mortgage. With that said, you will be paying a higher rate for the second home. I would sell the house you are in right now use the proceeds to put down on your new home and have money to in the bank.

I agree with the previous answer. Usually normal people want to keep their existing homes and turn them into rentals for the wrong reasons. Besides getting over-extended, you may not be cut out to be a landlord. More importantly, once you treat the property as income property and not your primary residence, you have long-term tax consequences. This is fine as long as you do your homework and know exactly what you are doing.

you receives a minimum of a $6000 tax income starting up your first finished calendar year (not $2000) for interest and genuine property taxes that you does not be able to deduct if renting. (Avg 15,000 in line with year interest + 7000 taxes x 28% tax kept. in case you lease that particular same abode, the lease will be larger than 1800. If the owner in basic terms bought it and is renting to you straight away - his month-to-month costs he has to conceal will be an same as yours to purchase - loan -1678, taxes-583, insur-80, restoration and maint,-2 hundred so there's no way you may want to get the exact same abode for any decrease than 2541 - he's not likely to employ it to you at a seven-hundred/month loss, plus your lease will boost in line with annum-in all likelihood 3-4%. In 10 years at in basic terms a three% annual boost in abode fee, it really is decrease than the lengthy run avg boost, the abode would boost more effective like one hundred,000 besides to paying down the non-public loan stability about 40 5,000, plus the 60,000 tax income decrease back from itemized deduction. so as it really is a income of two hundred,000+ compared to 70,000 at 5% (if you're fortunate) - taxes leaves you with 25,000 information superhighway interest income minus $50,000 entire will boost in basic terms from a three% advance in lease price each and every year - so that you would wind up with $25,000 decrease than you began with - ignoring inflation vs. a 2 hundred,000 income in information superhighway worth from possessing.

Yes, your rent that you get from the house will be considered income, and the bank will allow you to do that as long as you have a lease. Good luck!

If you have equity in your current home you can take out a line of credit against that equity. We are in the same situation and that is what we are doing.