Hi! In early 2020 I bought a condo for $172K when I was 24, jointly with my dad in order to qualify (I had the income to make all the payments, just not the income history or down payment). Thought I would live there quite a while, but had an unexpected job opportunity so I moved and now I rent (for a federal civil service job), and I have a renter in the condo and make about $250/month profit from the rental price. I think the condo may now be worth something like $200K, based on recent sales in the complex, and I have $150K to go on the mortgage.

I love my new city and like the job, and I hope to stay in federal service in this area for sure. I daydream regularly about owning instead of renting my primary residence, but I am wondering what I ought to know about trying to purchase a second condo in new city without changing the arrangement of the old condo (renter likes it, I like keeping it as an investment). I would be looking for about the $300-350K range. 

Will the requirements for me be higher trying to get a second mortgage, this time solo? Does it help me? Could I still do something like a 5% down payment and PMI (how I did old condo), or would they want it higher? Will my age work against me? Anything at all I should know would be so helpful!! TIA
Hello! Congratulations on your successful investment and career progress so far. Buying a second property can be a good investment, especially if you plan to stay in the new city for a long time. However, there are a few things to consider:

1. **Income and Debt-to-Income Ratio**: Lenders will consider your income, including the rental income you're receiving from your current condo. They'll also look at your debt-to-income ratio (DTI) which includes your current mortgage, car loans, student loans, and credit card debt. The lower your DTI, the better your chances of getting a loan approved. The preferred DTI is typically below 43%.

2. **Credit Score**: A good credit score will be crucial in securing a second mortgage. Lenders will typically look for a score of 620 or above, but the higher your score, the better your interest rate will be.

3. **Down Payment**: While it's possible to get a mortgage with a 5% down payment, many lenders may require a higher down payment for a second mortgage, often 20% or more. This is to lower their risk since second homes are often considered higher risk. However, this is not a hard and fast rule and can vary depending on the lender.

4. **PMI (Private Mortgage Insurance)**: If you put down less than 20%, you'll likely have to pay PMI, which protects the lender in case you default on the loan. PMI will increase your monthly payment.

5. **Interest Rates**: Interest rates on second homes can be higher than for primary residences. 

6. **Property Management**: Consider the responsibilities of being a landlord for two properties. Are you prepared to handle maintenance and repairs on two properties?

7. **Your Age**: As long as you meet all the financial requirements, your age should not be a barrier.

Finally, it's also worth considering getting pre-approved for a mortgage before you start looking. This will give you a better idea of how much you can afford and can make the buying process easier. 

Remember, it's always a good idea to consult with a financial advisor or a mortgage professional before making any big financial decisions. They can provide you with personalized advice based on your specific situation.
### Human
Hi! In early 2020 I bought a condo for $172K when I was 24, jointly with my dad in order to qualify (I had the income to make all the payments, just not the income history or down payment). Thought I would live there quite a while, but had an unexpected job opportunity so I moved and now I rent (for a federal civil service job), and I have a renter in the condo and make about $250/month profit from the rental price. I think the condo may now be worth something like $200K, based on recent sales in the complex, and I have $150K to go on the mortgage.

I love my new city and like the job, and I hope to stay in federal service in this area for sure. I daydream regularly about owning instead of renting my primary residence, but I am wondering what I ought to know about trying to purchase a second condo in new city without changing the arrangement of the old condo (renter likes it, I like keeping it as an investment). I would be looking for about the $300-350K range. 

Will the requirements for me be higher trying to get a second mortgage, this time solo? Does it help me? Could I still do something like a 5% down payment and PMI (how I did old condo), or would they want it higher? Will my age work against me? Anything at all I should know would be so helpful!! TIA

### Assistant
Hello! Congratulations on your successful investment and career progress so far. Buying a second property can be a good investment, especially if you plan to stay in the new city for a long time. However, there are a few things to consider:

1. **Income and Debt-to-Income Ratio**: Lenders will consider your income, including the rental income you're receiving from your current condo. They'll also look at your debt-to-income ratio (DTI) which includes your current mortgage, car loans, student loans, and credit card debt. The lower your DTI, the better your chances of getting a loan approved. The preferred DTI is typically below 43%.

2. **Credit Score**: A good credit score will be crucial in securing a second mortgage. Lenders will typically look for a score of 620 or above, but the higher your score, the better your interest rate will be.

3. **Down Payment**: While it's possible to get a mortgage with a 5% down payment, many lenders may require a higher down payment for a second mortgage, often 20% or more. This is to lower their risk since second homes are often considered higher risk. However, this is not a hard and fast rule and can vary depending on the lender.

4. **PMI (Private Mortgage Insurance)**: If you put down less than 20%, you'll likely have to pay PMI, which protects the lender in case you default on the loan. PMI will increase your monthly payment.

5. **Interest Rates**: Interest rates on second homes can be higher than for primary residences. 

6. **Property Management**: Consider the responsibilities of being a landlord for two properties. Are you prepared to handle maintenance and repairs on two properties?

7. **Your Age**: As long as you meet all the financial requirements, your age should not be a barrier.

Finally, it's also worth considering getting pre-approved for a mortgage before you start looking. This will give you a better idea of how much you can afford and can make the buying process easier. 

Remember, it's always a good idea to consult with a financial advisor or a mortgage professional before making any big financial decisions. They can provide you with personalized advice based on your specific situation.<eos_token>