Hi Christie,

I've heard that normal lending institutions require 2 years of rental income to use towards qualifying for a loan. I just assisted a buyer and we found a lender who didn't need this. They are out there.

Yes you are OK buying another place with a property underwater. How long have you had the condo rented? You may have to wait until the rental shows up on your tax returns before you can use that rental income. You may have to qualify for the new house counting both house payments, because there is a rule if you don't have 30% equity in your former residence, you cannot count the rent as income. However if you have mover out of it a while ago, and the rent shows up on your schedule E of your tax returns, it will be considered a rental and not a primary residence you are vacating, and you will be able to count the rent.

Hi Christie,
a mortgage broker has access to many lenders and loan products and can best answer your question and find you a loan that fits your profile, my website has a link to one in California. Good luck

Buyer 50%-60% Cash Rebate
Seller 50% Commission Discount

Flavio Tejada, Owner/Broker, MBA, Realtor

Hi Christie,
I am aware of a lender offering this type of financing where your existing rental property is underwater. You will need a 680+ fico, 20% down and no mortgage lates for 12 months. If you are interested, contact me through my profile and I will send you the contact information.
Good luck,