Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?
It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]
GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.
Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..
IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….
They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.
For those that want to move up or down, I guess they are saying SELL what you have and then go buy.
There is a greater plan building, and it may not include bubble markets like SoCal…
People seem to forget that this is a nationwide problem, not just a Southern CA problem.
If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS
