Lenders typically view "departing residence" scenarios differently than standard purchases.
: While you can get a primary residence loan for as little as 3.5%–5% down for the new home, having 20% equity in your first home is often required to avoid Private Mortgage Insurance (PMI) or to tap into equity for the new down payment. 🏠 Converting the First Home how to buy a second home and rent the first
: You will likely need "reserves"—liquid cash (often 6 months of payments for both homes) tucked away in a savings account to prove you can handle vacancies. how to buy a second home and rent the first
: Lenders generally want your total DTI (all monthly debts vs. gross income) to be below 43% to 45% . how to buy a second home and rent the first