Good news for homeowners who are underwater on their current home and unable to easily sell! New conventional mortgage guidelines now allow borrowers to more easily rent (not sell) their current home and use the rental income to offset their new home loan. Under these new rules, borrowers may count 75% of the rent from their current lease agreement as income, regardless of their level of equity in the home and experience as a landlord.
Image via Housingwire.com
In order to count this rental income, you simply need to have a signed lease agreement, first and last month’s rent checks, and a bank statement showing their deposit.
These new guidelines are expected to make home buying much easier for homeowners who are hoping to avoid a short sale because they owe more on their current home than it’s worth. Now, these borrowers may be more likely to qualify for a new loan without selling their first home.
Interested in learning more? Give EveryHome a call at (215) 699-5555 for a list of helpful, reputable lenders who would love to provide you with more individualized assistance.
Please note that only selected lending agencies may be offering this program. Conventional financing only. Individual investors may not qualify.