Renting Your Property After Buying a New Home

Your house is appreciating, in a very nice neighborhood, desirable, and easily rented for more than what you owe per month on your mortgage. You find a new home in an even better neighborhood, for less than you currently owe on your main residence.

The problem is, you will need to refinance your existing home to remove the equity and use it as a down-payment on the home you would like to buy. The second problem is, that no lender will give you a refinance loan, unless you are going to live in the home you are refinancing.

The only way around this issue is to get the refinance loan with the plan to live in your home at present. Once you've refinanced, change your mind and purchase the second home with the money from the refinance loan, rent out your house, and move into the new purchase. Some folks would call that dishonest, however, in the land of real estate and financing, it's simply referred to as a wise financial decision.

The old story about buying the house next door and then dumping yours works too, if you can manage to buy the house next door for a song, and you don't mind trashing your credit when you mail your keys back to your lender on the old property.


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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.