Posted on: 20th Sep, 2009 09:58 pm
Any one has more information on changes in lending rules when it comes to lending to some oen who has already borrowed money for an investment property
This i what i have hard and read
If the rental is rneted for more than six months the rental income will be counted when they calculate the debt to income ratio
If your hosue is not yet rented and if you want to buy anoher house and mpove in to it, you will need to show atleast 6 months of reserves to pay for both the property and also your house needs to be rented before your loan is funded
All this is to aviod people from leaving the current house becuse the house vavlu has dropped and buy a another house with lower price
Please share any more detils if you know
There is not much discussion about his on this forum
This i what i have hard and read
If the rental is rneted for more than six months the rental income will be counted when they calculate the debt to income ratio
If your hosue is not yet rented and if you want to buy anoher house and mpove in to it, you will need to show atleast 6 months of reserves to pay for both the property and also your house needs to be rented before your loan is funded
All this is to aviod people from leaving the current house becuse the house vavlu has dropped and buy a another house with lower price
Please share any more detils if you know
There is not much discussion about his on this forum
As far as I know, earlier, people could get a mortgage for an investment property if they owned up to 10 properties. However, now Fannie Mae and Freddie Mac have restricted their lending rules for investment properties. Now, people can only have four investment properties and get a mortgage.
But the rules are much more strict than before
Not only 4 properties but also the requirments are much more strict
Not only 4 properties but also the requirments are much more strict
Basic reason is down fall in property values. Finally major portion of losses goes to financial companies
Thats not the reason
The main reason being, people were buyign houses which have lost value and they use to walk away from thier current property since it lost the value
The main reason being, people were buyign houses which have lost value and they use to walk away from thier current property since it lost the value