Buying new and renting old? Be careful!

If you are buying a new home and deciding to rent your current home, here are new guidlelines that you MUST adhere to in order to get a mortgage on the new house! <div><div><span class=”Apple-style-span” style=”font-family: ‘Times New Roman’; font-size: 14px; “><br />*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Both the current and the proposed mortgage payments must be used to qualify the borrower for the new      transaction<br />*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Property has not been listed for sale in the past 90 days (unless evidence of job transfer is provided)<br />*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Property has been owned at least 12 months (unless evidence of job transfer is provided)<br />*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Reserves equivalent to 6 months PITI for both properties is required.<br />*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Up to 75% of Rental Income may be used to offset the mortgage payment if:<br /><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span><span class=”Apple-tab-span” style=”white-space: pre; “> </span>There is documented equity of at least 30% in the existing principal residence (as determined by an appraisal or AVM); AND<br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Provide a copy of the fully executed lease agreement; AND<br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span>*<span class=”Apple-tab-span” style=”white-space: pre; “> </span><br /><span class=”Apple-tab-span” style=”white-space: pre; “> </span><span class=”Apple-tab-span” style=”white-space: pre; “> </span>Provide evidence of receipt of a security deposit from the tenant and evidence that it has been deposited into the borrower’s account.</span><br /></div><div><span class=”Apple-style-span” style=”font-family: ‘Times New Roman’; font-size: 14px;”><br /></span></div><div><span class=”Apple-style-span” style=”font-family: ‘Times New Roman’; font-size: 14px;”><br /></span></div></div>

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