I am looking to buy a second house which is about $800K (A 1600-sqft, 3b3b condo in the suburb). I intend to live in this house as well as renting out two bedrooms for roughly $1200 per month each. I am interested to know strategies to qualify for a loan to get the house (i.e. maximize the money I can borrow from the bank)
My current situation is,
- I have $130,000 in cash
- My first house is worth about 750K but I have a outstanding mortgage balance of 360K
- The house has $4300/monthly rental income but I pay $2400 per month for mortgage, HOA and property tax combined
- My salary is $140,000, with $20,000 yearly bonus and $50,000 yearly stocks. However I only joined this company for about one year
- I do not have other debts such as auto loan or student loan
I heard, usually I can get a loan which equals 4 times of my salary. That makes it 560K and plus my savings which is only 690K and 110K shy of the house listing price. I am looking at options such as using first house as collateral or cash out refinance or get home equity loan, but I am not sure what is the best strategy here.