Refinancing rentals and second homes, answered plainly
My old home is now a rental. What now?
Plain answer
When you move out and rent your old home, lenders treat it as an investment property for a new refinance. Without a tax return showing the rental yet, they rely on a signed lease and often proof of the security deposit and first rent. The rent counted is still only a share of gross rent.
Last reviewed against the primary sources listed below.
Documents
- Signed lease.
- Proof of deposit and first rent payment.
- Updated insurance as a rental.
Tax timing
Once the property appears on your tax return as a rental, lenders usually use that history instead. Keep clean records from the first month.
Landlords also ask
How long do you have to own a second house to avoid capital gains?
Capital gains rules on homes and rentals depend on use and ownership periods; IRS publications and a tax professional can explain your case.
Can rent from my old home help me qualify for a new home?
Often yes, with a signed lease and other documents, subject to the lender's guidelines.