A question for the Mortgage Lenders.
This is a question about new homebuying qualifications for move up buyers.
Scenario:
A buyer has a house they bought a yr and a half ago at 85%ltv Conv. They want to rent this house and have a prospective renter. They want to buy another home = to the same value of current home payment will be a few hundreds more but not much. The second purchase will be their new primary residence they want to buy it 0 down VA. With out calling a million banks to get prequalified. Do all banks require 20% equity in the current residence? And what other new guidelines might be required?
What use to be an easy move up transaction is turning in to a nightmare.
Dee Dee Jones
Wainwright Real Estate
"I can dream alone, build alone and strive alone, but true success always requires the help and support of others. Please send me your referrals."
Visit my website today, The Hampton Roads Real Estate Lady! Deandrea "Dee Dee" Jones
Dee Dee, Just about everywhere I have seen has "buy and bail" policies.
that is the reason for the equity in the existing home being an issue. and it is actually 75% not 80. They can buy with less than that in the existing home if they qualify for the new home W/O taking into account the rental income. So if they can qualify if they can comfortably carry both mortgage payments.
I had one client that was a VA transfer from one base to another. They rented out their old home, moved and a few months later found the new home. But they could prove that they collected rent, had security account, lease etc.... so that one made sense. But it would not have worked if the bounced straight from one to another.
So Buy and Bail issues are truly out there. I hope that answers your questions... If not, give me a call or shoot me out an email!
Rob
rrauf@remn.com