Posted on: 22nd Oct, 2010 09:33 am
I just found out that I qualify for a FHA loan through Bank of America, even though I currently have a home loan through another lender... But when the loan rep. asked me what my plans were with my current property, I told him that I planned to rent it (even though I'm hoping to just let it go after I get into another home.)
However, the Bank of America rep. also told me that I would need to sign some sort of document (a renters lease?) saying that my current property was being rented out before things could move forward with another home loan.
So my question is if there are any lenders who would not require this kind of signed agreement before I could get into another loan/home -- or is that a standard thing that every lender does?
However, the Bank of America rep. also told me that I would need to sign some sort of document (a renters lease?) saying that my current property was being rented out before things could move forward with another home loan.
So my question is if there are any lenders who would not require this kind of signed agreement before I could get into another loan/home -- or is that a standard thing that every lender does?
Guest, I think what you really heard was that they'll require a lease agreement prior to the closing of your new loan, not necessarily now. That's very much standard practice, and you'll find virtually every lender will ask for the same thing.
If you can handle payments on both properties without the need for rental income, then that's the way to go - don't get the lease and simply qualify with whatever income you have now.
If you can handle payments on both properties without the need for rental income, then that's the way to go - don't get the lease and simply qualify with whatever income you have now.
@ Gmakerley: Say I go the other way. Say I don't opt for a renter, and instead opt to keep my original home as a secondary residence of which I pay for. In that case is there any type of documentation I need to have in place? Are there any account funds that need to be in order?
I'm looking for less of a headache, tbh.
I'm looking for less of a headache, tbh.
Hi Guest,
If you don't place renters in the property, then I don't think you'll have to sign any document. You will be keeping the property as your second home only.
Thanks
If you don't place renters in the property, then I don't think you'll have to sign any document. You will be keeping the property as your second home only.
Thanks
I'm in agreement with James here. If you simply maintain your current home as a second home, you'll not need to provide any documentation. It's strictly a matter in that situation of being able to afford the payments on each obligation plus whatever else you may have.