Seems like they are sending mixed messages[/quote]
HOMEPATH is an EXTREMELY limited program…
The guidelines for buying RENTAL properties is getting TIGHTER and tighter..
Here is what I received this morning from a major lender:
Second Home and Investment property guides have been updated to reflect that first time
homebuyers are not eligible for 2nd home or investment property transactions if they have not owned a PRINCIPAL residence in the past 3 years. The previous guides stated the borrower must have owned a (any) home in the past 3 years.
This change is effective immediately.
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This may not apply to all lenders. It may or may not be a FNMA/FHLMC guideline…yet
There are other crazy guidelines. If you do not have a 2 year documented history of being a landlord, you will need to qualify for multiple home carrying costs AND have 6 months documented reserves to cover PITI.. without any credit for rental history…
All of these (excessive, extreme) guidelines a few years ago would have prevented the largest bubble in the history of the world from inflating, now they will just prevent a recovery from occuring anytime soon…
Something about a horse and a barn door applies…
HLS
