Farmington Home Sellers: Should You Rent It Out or Sell It?

Rent It Or Sell It?

Many Farmington home sellers are challenged with the problem of owing more on their home loans than what their property is worth in today's market. The fact is that in order to sell your home in the MN real estate market today you need to pay off the entire mortgage in order to sell the home. Unless you want to arrange a short sale with your mortgage lender, this means you will bring money to the closing in order to pay off the remaining balance that you owe. Many home sellers who need to move now are considering the possibility of making their current home available to rent with the hope of buying a new house.

Benefits of Rising Rents in Farmington

The good news today is that with the tougher housing market, the amount you can get for rent has increased significantly. Renters find that they are competing with each other to rent out a Farmington home as their is a shortage of quality home rentals available today. Many home sellers in this position are finding that they can more than cover the expenses for owning the home with the increased amount of rents.

The goal, of course, is to rent out the current home long enough to allow the Minnesota real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.

Will rental income offset my mortgage payment when qualifying for a new mortgage?

Lenders have guidelines for the Farmington sellers who will rent out their home to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.

Once we have a chance to meet to discuss the value of your current home it is important that you go through the process of getting preapproved for a mortgage loan. Your mortgage lender can help you decide which of the options are best whether selling or renting out your current home. The process of preapproval is is usually free and contains no loan obligation. A good mortgage lender will be able to analyze all of the financing options available to you such as through MN FHA loans, Conventional, VA, or other types of mortgage financing.

Farmington, MN Info

The city of Farmington, MN is a rapidly growing outer-ring suburb of the Twin Cities. With plenty of affordable real estate, Farmington, MN has almost doubled its size over the past decade, now with over 20,000 residents. Convenientlyocated just south of Rosemount in Dakota County, many first time home buyers have used the have used the Dakota County first time buyers program to buy in Farmington. If you want to buy or sell real estate Farmington, MN MN real estate please don't hesitate to give me a call.

If you are considering renting out your current home, please email me for more information.




Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
rlphyle@cbburnet.com
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
www.facebook.com/robphylerealestate
Visit my website to find Minnesota homes for sale