Compare Mortgage Quotes

Guest

We have been trying to find current info on rules for buying new and leasing out old house. We were approved for financing with the intention of leasing out our current property. We were ready to head out to meet with our realtor and he called us and told us to hold off b/c of some new rules. He told us that people are buying houses, stating that they are leasing and then bailing out on the old home. This obviously doesn't affect us b/c we already have a couple that are willing to lease out our place. What is this new rule and what do we have to do to get this rolling? He said he would get back to us when he researched it, but we really want to get on the ball with an offer. Any advice or answers welcomed. Confused

greg1 · Posted: Mon Nov 03, 2008 1:07 pm Post subject:

It is being imposed by the lenders individually. The rule is not uniform to all. But, here is an explanation from 1 lender to give you an idea.

To use rental income:

Relocations: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance. A properly executed lease agreement (signed by the homebuyer and lessee) of at least one year’s duration after the loan is closed is required. Evidence of a security deposit should also be obtained.

Sufficient Equity in Vacated Property: The homebuyer has an LTV of 75% or less, as determined by either a current appraisal (no more than 6 months old) or by comparing the unpaid principal balance to the original sales price of the property.

Guest

Thank you Greg.

Guest

Are there any options if you dont have the equity in your existing home?

jerry · Posted: Fri Nov 21, 2008 4:01 am Post subject:

Hi pjearly!

There is nothing as such that you cannot get a a loan if your current house has no equity. I have read your your earlier post and you have mentioned that you are upside down on your current home. In that case, the lender will first want you to pay off that mortgage and then look for another. They may ask you to sell off that property and pay off the debts.

Thanks,

Jerry

Guest

by "upside-down" I meant that I owe more than its current market value. I am current on all payments and debts. Have good credit and want to keep my house. I just also want to take advantage of current prices to but another one if possible.

Niicss · Posted: Sat Nov 22, 2008 1:43 am Post subject:

Hi Pjearly,

Have you spoken to other lenders? I think you need to speak to few more lenders and check if they can offer you loans. Do you want to take the loan for the same property or do you want to buy a new one? If you want to take the loan for the same property, try refinancing the mortgage. I guess, the lender will agree to refinance as you are current on all debts and payments.

Thanks.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Current rules on buying new house and leasing out old