Monday, March 15, 2010

Rental of present home and purchase another (future home to be owner occupied)

If a buyer would like to rent their present home and purchase a new home, what is the documentation requirement to make this possible?

  1. 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
  2. Rental home must have at least 30% net equity (from an appraisal or County tax notification)
  3. 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).
  4. 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.

1 comment:

Jeff Stinson Property Manager said...

Great info. Keeping property, rather than selling, is usually a great financial move. Especially in this market.

Jeff Stinson
Kasteel Property Management