[carmie]

...home if I want to rent out my current home? My husband and I make a combined income of about $150K. We currently own a home with a mortgage of about $265K. We'd like to move, but due to the housing crisis, our home is worth only about $215K. We can afford a bigger mortgage and would like to move, but we don't want to sell our home at what it's worth and owe money at the closing. We were thinking of saving up for a down payment for a new home and then trying to rent out our current home. Would a bank give us a loan if we already have a mortgage but can show proof of renters? Thanks!Also, I don't want to consider a short sale or foreclosure on the first home. That just seems unethical to me.

[Bert]

read your loan agreement and deed of trust. It is more than likely prohibited. If you were allowed to do it, you'd have to assure that the unit will rent for enough to pay the debt service and taxes.Why don't you just save a downpayment, start buying a new home and if successful, turn the other back to the lender and let them foreclose