Can't Sell Your House And Considering Renting It Instead?

With today's market, many people are thinking about alternatives to selling their existing house, especially if they are trying to move do to a job or other relocation need. Before you go looking for that new house before the rental agreement ink has dried, you need to check with your mortgage company to make sure that will work.

Due to changes and new rules, many mortgage companies will not let you count rental income as income. At least not without some requirements. So what you end up with is an income to debt ratio that is way off. The problem occurs because you have an existing house whose mortgage is showing on your debt sheet. Then you go to try and include your lease income on your income sheet and the bank says not so fast.

It is best to check with your mortgage company to see how they need you to work with them. In many cases they will require a few months of rent to be held in your account or escrow, but in some cases they may just say they cannot approve you for a new loan while you still own your existing home, leased or not.

Again it is best to check first and ask around with different mortgage companies as requirements may differ from company to company.