Debt On L/O - Posted by Adum

Posted by Glenn-OH on May 02, 2000 at 21:37:36:

The debt is not releived. 70% of the income from the lease will count for income to be used in qualifying for the new loan (not 100%).

Debt On L/O - Posted by Adum

Posted by Adum on May 02, 2000 at 19:21:59:

I beleive I heard this from a Legrand tape. Once I have a lease/purchase signed with the seller, the seller is or can be relieved of 70%(?) of the debt?

For example, the seller is trying to purchase a new home and the debt of the home I l/o from him is still on his credit. I think Ron said this seller can show the l/o contract to his prospective lender and be relieved(credit report wise)of some of this debt. I hope someone understands where I’m coming from. Thanks to those who do.


Re: Debt On L/O - Posted by Vic

Posted by Vic on May 02, 2000 at 22:50:43:

Around here most lenders use 75%, but I’m sure that varies from investor to investor. By the way, on a land contract, they can us the whole 100%.