Qualifying for More than One Home
Posted on | September 9, 2009 | No Comments
In the good old days, about two years ago, investors, people who wanted to purchase a second home and those moving from one location to another who could wait to sell their current home could do all sorts of things to help them qualify for the loan. All of which were within the regulations of the mortgage industry. Today, that is all changed.
No matter what your situation, your credit score or how much money you are worth on paper, you must qualify with ALL payments on ALL properties. If you have been a landlord and show it on your taxes, that’s great. If you are just starting to rent your property or don’t show it on your taxes, you can’t count that money as money on earn against the payment. If you own a home and are moving to another, you must qualify with both payments; period. It’s the same if you are purchasing a second home as well. The underwriter wants to make sure you have the income (not the cash on hand) to pay for all your debt and still be within the guidelines. Full Doc and Full Disclosure.
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