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Old 07-17-2012, 08:39 AM
 
10 posts, read 10,084 times
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I wanted to know if i could use income from my rental property to purchase a vacation home for me and my family. I currently have a primary home as well as a rental property(that used to be my primary before relocating with job). I want to buy a vacation home next year but would need to use my salary as well as rental home income to get the right place. I have claimed my rental on my taxes last year and will claim on taxes next year having two full years of rental income on taxes before my purchase. I also just started getting a monthly bonus in 2012 which is fairly consistent every month would i be able to use that next year.
So to purchase i want to use salary+rental income+bonus. trying to get my ducks in a row.

Thanks in advance
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Old 07-17-2012, 09:32 AM
 
Location: Austin
7,244 posts, read 21,755,019 times
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It's all about debt to income ratio. The rental has been in place long enough, so that's not an issue. However, the banks do not count 100% of your rental income as income because they have to take into account vacancy time. Your bonuses will not count (more than likely) because there is not a 2 year history of them. They might take some of it as they could average the past year with the $0 last year and accept half the bonus, but probably not.
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Old 07-17-2012, 10:31 AM
 
10 posts, read 10,084 times
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Thanks for the help. I would love my bonuses to count so I might wait one more year to have two full years of bonuses to average. What would be minimum down payment. Some say 10%
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Old 07-17-2012, 11:00 AM
 
Location: Southern New Hampshire
10,041 posts, read 17,995,009 times
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When I was thinking of buying a rental property I was told I needed 25% down (this is in New Hampshire) due to stricter standards. Not sure about vacation homes but 10% sounds low for those.
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Old 07-17-2012, 11:03 AM
 
Location: Londonderry, NH
41,478 posts, read 59,660,138 times
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IMHO - If you cannot pay cash you cannot afford this luxury toy.
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Old 07-17-2012, 11:13 AM
 
10 posts, read 10,084 times
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Greg w thank God its not up to you or the real estate market would be worse off then it already is. When i buy this vacation home next year it will be the fourth property that i will own. Im trying to buy the next house as a legite vacation property. Karen thanks for the response but i will not rent this one out it will just be owner occupied.
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