Posted by William Bronchick on April 10, 2000 at 13:34:17:
They will credit 75% minimum; under the situation I discussed above, they give 100% credit
Owner buying another house after selling subject to - Posted by Rick
Posted by Rick on April 09, 2000 at 11:50:20:
A question occurred to me while reading a post below.
If you “make a non-assumable loan assumable”, such as by using a PACTrust, does this free up the seller to buy another property to live in, even though the loan stays in their name?
My guess is that under a lease/option scenario, the old property would appear as investment property to the new lender, and in an owner financing scenario this would beef up their income per year?
Re: Owner buying another house after selling subject to - Posted by William Bronchick
Posted by William Bronchick on April 09, 2000 at 21:48:02:
My experience has been that if the borrower shows the new lender an agreement by which someone else is making their payments for them and 12 months canceled checks from that person, the borrower’s debt ratios will not be affected by the loan on his credit report.
Re: Owner buying another house after selling subject to - Posted by mtgbrkfla
Posted by mtgbrkfla on April 10, 2000 at 13:28:16:
I have dealt w/ similar situations as a mortgage broker.
Most Lenders will still count the home in the Debt Ratio. If they can provide proof the the old loan is being paid for via Lease, Agreement for Deed, etc… they will give a credit of 75% of the rent or payment.
If their ratios can take the small hit - no problem.