Yesterday I got this email from Dee Carmack with Charter Bank, a local lender in town. I thought it was pretty helpful and applicable to today climate for the housing market.
Guidelines were updated this month to reflect the following update on purchases (Fannie Mae guidelines not Freddie Mac).
If you are buying a primary residence to replace the primary residence that you own now, guidelines will now allow us to use income from a lease of the home you are either trying to sell or plan to lease. The only documentation that is needed is a copy of the lease agreement and a copy of the security deposit being deposited into the customer’s account. We can now use 75% of the monthly lease amount. This is an important update from what was previously allowed, 2 years rental history/filed on your tax returns.
This could help when you have a customer that wants to buy but paying two mortgage payments pushed their debt to income ratio’s above the guidelines.
This could also help if you have a customer that is moving to this area, wants to buy and has not been “able” to sell their existing home.
Hope this helps!
Thank You,
Dee A. Carmack
Mortgage Loan Originator
East University Branch
Cell # (706)518-7627
Fax # (334)887-6529
Desk # (334)887-5465