Home owners across the region are cashing in on the current high-dollar rental market and buying larger, move-up homes with special, zero down home loans for second-time buyers. Read on and learn how you can buy-up and not lose your equity:
The number of rental homes available in the market has steadily declined since tax reforms enacted by congress in 1986 wiped away most of the incentives for investors to acquire rental properties. The most plentiful source of new rental homes are coming from individual homeowners converting their existing residences to rental property.
According to tax experts, individual homeowners who convert their residence to a rental property can still take advantage of tremendous tax breaks.
In the past, homeowners have used the equity from the sale of their old home as a down payment for a larger move-up home, but with home prices stagnant in recent years, move-up buyers have not yet accumulated the equity needed for a down payment on a larger home. The alternative is to keep the old home as a rental and use personal savings as a down payment or use a zero down loan to buy the move-up home.
David and Deborah recently chose to scrap their plans of selling their townhouse and kept it as a rental home. They left their existing equity in the townhouse and bought a single-family home with a zero down conventional loan. They receive $50 more per month on the rent than the mortgage payment.
For more information,
complete the form below:
or complete the Free On-Line
Pre-Qualification form
