LO: How Does Seller Buy Their Next House?
I have been unable to get this aspect of the L/O strategy clarified: I have read that some financially strapped sellers can run into potential difficulty obtaining financing for their next house if they lease their current home.
1] Is this true?
2] If so, how have you all been handling this issue?
TIA
REIMan,
"I have been unable to get this aspect of the L/O strategy clarified: I have read that some financially strapped sellers can run into potential difficulty obtaining financing for their next house if they lease their current home."
1] Is this true?
I don't think so....IMHO...the house they are leasing becomes an asset and the lenders include 75% of the income in your DebtToIncomeRatio...
2] If so, how have you all been handling this issue?
Not an issue for me!!
....I buy houses an then L/O them..
....as always,
GoodInvesting, Rocky
Maybe he means in subject to when the original owner holds his mortgage and the buyer takes it subj to.. ?
[addsig]
yes, rocky is correct in this point, depending on where the next funding is coming from, the lender should accept 70-75 percent investment income..this can be a hassle with some but a hud-1 and or other statements and copies of deeds etc to his lender from you or your company should get proof that his obligation to his original mtg is taken care of..hope this helps..
regards-pat prentiss