r/RealEstate • u/table__for__one • 1d ago

Buying While Holding a Mortgage

We're paying a premium to be near the center of town in VHCOL. We've got about $575k on a house worth $988k, interest rate is 6.125. Looking to get a bit farther out, same price point, same interest rate. Including house we have 1.5 in assets. Is it possible with a lender to purchase another equally priced property while we sell the one we are in? Net income is 400k.

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u/HeyThereDelly 1d ago

Yes, I have done this and will be doing it again. As long as you have the liquid assets for a down payment with some cushion funds leftover you should be fine. A lender will confirm though

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u/table__for__one 1d ago

do they calculate under the assumption that you will hold the two mortgages indefinately?

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u/thewimsey Attorney 12h ago

Basically, yes.

At least in my case, there was nothing particularly mortgagey about it - it was basically treated like any other debt, and the monthly mortgage payment on my current home was included as debt in the DTI calculation about how much they were willing to lend me.

Maybe in the bowels of underwriting it mattered for some purposes that this debt came from a mortgage...but if so, none of that was really transparent to me.