{"version":"1.0","type":"rich","provider_name":"Acast","provider_url":"https://acast.com","height":250,"width":700,"html":"<iframe src=\"https://embed.acast.com/$/69c148bb1a160b44db9c8fcc/6abb13baf4720dfefb4db2e4?\" frameBorder=\"0\" width=\"700\" height=\"250\"></iframe>","title":"How to buy a home when you already own one","description":"<p>1056. Should you buy your next home before selling your current one, or is it safer to sell first? How does an existing mortgage impact your ability to qualify for a new loan, and where should your down payment actually come from? Host Laura Adams answers a listener’s questions about navigating the tricky logistics of moving and whether to convert her current house into a rental property.</p><p><strong>Key Takeaways</strong></p><ul><li>You can source your down payment from savings, home sale proceeds, a pre-arranged home equity line of credit (HELOC), or a short-term bridge loan.</li><li>Carrying two mortgages at once counts toward a lender’s debt-to-income (DTI) ratio for underwriting.</li><li>If you convert your primary home into a rental property, most lenders allow you to use 75% of rental income (backed by a signed lease) to offset your existing mortgage when qualifying for a new loan.</li><li>A leaseback agreement allows you to sell your home, receive cash proceeds on closing day, and remain in the home as a tenant for up to 60 days.</li><li>Holding two properties simultaneously usually requires higher credit scores and cash reserves. </li><li>Consult a mortgage expert to calculate your exact borrowing limits under different scenarios before placing offers or listing your property on the market.</li></ul><p><strong>Discover more from Money Girl!</strong></p><p><u><a href=\"https://www.facebook.com/MoneyGirlQDT\" rel=\"noopener noreferrer\" target=\"_blank\">Facebook</a></u></p><p><u><a href=\"https://www.quickanddirtytips.com/money-girl-newsletterhttps://www.quickanddirtytips.com/newsletters\" rel=\"noopener noreferrer\" target=\"_blank\">Newsletter</a></u></p><p>Transcripts available at <u><a href=\"https://www.quickanddirtytips.com/transcripts/money-girl/\" rel=\"noopener noreferrer\" target=\"_blank\">QuickandDirtyTips.com</a></u>.</p><p>Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.</p>","author_name":"QuickAndDirtyTips.com"}