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.
Adum
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%.
Vic