Temecula guy wrote:
I did hear today from a lender that fannie/freddie/fha and others are onto the scam of buying a new home at todays prices under the premise that you rent out the current upside down house and then after moving, letting the upside down house go, with a low and protected interest rate on the new house and no need for a good credt score anymore. Supposedly they are denying the loans en masse when it involves renting out the current home unless there is equity in it.
TG, what about the following scenario: A person has a primary residence (that has negative equity), he then tries to buy another house as an investment property. He is willing to put down 30% & pay the higher interest rate that comes with investment properties. How do lenders treat these cases ?
