If a buyer would like to rent their present home and purchase a new home, what is the documentation requirement to make this possible?
- Buyer must have at least 6 months of piti (full payments) for the home to be a rental on deposit in checking or savings AFTER closing of the purchase of the next home
- Rental home must have at least 30% net equity (from an appraisal or County tax notification)
- Show that the Security Deposit and 1st months rental/lease payment has been received (verification that the amount has been deposited in their checking or savings account).
- The buyer cannot have an FHA loan on the rental and get a future FHA loan (only 1 FHA owner occupied loan is allowed at a time).
Call me if you have any other questions.