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  • July 24, 2008 at 1:55 PM #246369
    seattle-relo
    Participant

    How do they determine that the property has at least 30% equity? Do they have a new appraisal done?

    July 24, 2008 at 2:49 PM #246212
    gn
    Participant

    [quote=gn]Just to be clear, consider the following scenarios:

    1. John currently owns & lives in a house. He has 30% equity in that house. He wants to buy another house to live in & rent out his current house. Does he need to be able to carry the payments on both homes to qualify for the loan ?

    2. Mike currently owns & lives in a house. He wants to buy another house to rent out. The house he wants to buy is currently vacant. If Mike has a 30% down payment, does he need to be able to carry the payments on both homes to qualify for the loan ?[/quote]

    Jim Klinge, SD Realtor & HLS,

    Can you weigh in on this ?

    Thanks.

    July 24, 2008 at 2:49 PM #246430
    gn
    Participant

    [quote=gn]Just to be clear, consider the following scenarios:

    1. John currently owns & lives in a house. He has 30% equity in that house. He wants to buy another house to live in & rent out his current house. Does he need to be able to carry the payments on both homes to qualify for the loan ?

    2. Mike currently owns & lives in a house. He wants to buy another house to rent out. The house he wants to buy is currently vacant. If Mike has a 30% down payment, does he need to be able to carry the payments on both homes to qualify for the loan ?[/quote]

    Jim Klinge, SD Realtor & HLS,

    Can you weigh in on this ?

    Thanks.

    July 24, 2008 at 2:49 PM #246424
    gn
    Participant

    [quote=gn]Just to be clear, consider the following scenarios:

    1. John currently owns & lives in a house. He has 30% equity in that house. He wants to buy another house to live in & rent out his current house. Does he need to be able to carry the payments on both homes to qualify for the loan ?

    2. Mike currently owns & lives in a house. He wants to buy another house to rent out. The house he wants to buy is currently vacant. If Mike has a 30% down payment, does he need to be able to carry the payments on both homes to qualify for the loan ?[/quote]

    Jim Klinge, SD Realtor & HLS,

    Can you weigh in on this ?

    Thanks.

    July 24, 2008 at 2:49 PM #246368
    gn
    Participant

    [quote=gn]Just to be clear, consider the following scenarios:

    1. John currently owns & lives in a house. He has 30% equity in that house. He wants to buy another house to live in & rent out his current house. Does he need to be able to carry the payments on both homes to qualify for the loan ?

    2. Mike currently owns & lives in a house. He wants to buy another house to rent out. The house he wants to buy is currently vacant. If Mike has a 30% down payment, does he need to be able to carry the payments on both homes to qualify for the loan ?[/quote]

    Jim Klinge, SD Realtor & HLS,

    Can you weigh in on this ?

    Thanks.

    July 24, 2008 at 2:49 PM #246362
    gn
    Participant

    [quote=gn]Just to be clear, consider the following scenarios:

    1. John currently owns & lives in a house. He has 30% equity in that house. He wants to buy another house to live in & rent out his current house. Does he need to be able to carry the payments on both homes to qualify for the loan ?

    2. Mike currently owns & lives in a house. He wants to buy another house to rent out. The house he wants to buy is currently vacant. If Mike has a 30% down payment, does he need to be able to carry the payments on both homes to qualify for the loan ?[/quote]

    Jim Klinge, SD Realtor & HLS,

    Can you weigh in on this ?

    Thanks.

    July 24, 2008 at 4:47 PM #246341
    (former)FormerSanDiegan
    Participant

    In a bubbly or declining market this rule is an excellent one. However, as we approach reasonable values in San Diego, it seems like it will limit some legitimate would-be small-time investors as well.

    I guess another reason why cash is king.

    July 24, 2008 at 4:47 PM #246491
    (former)FormerSanDiegan
    Participant

    In a bubbly or declining market this rule is an excellent one. However, as we approach reasonable values in San Diego, it seems like it will limit some legitimate would-be small-time investors as well.

    I guess another reason why cash is king.

    July 24, 2008 at 4:47 PM #246498
    (former)FormerSanDiegan
    Participant

    In a bubbly or declining market this rule is an excellent one. However, as we approach reasonable values in San Diego, it seems like it will limit some legitimate would-be small-time investors as well.

    I guess another reason why cash is king.

    July 24, 2008 at 4:47 PM #246554
    (former)FormerSanDiegan
    Participant

    In a bubbly or declining market this rule is an excellent one. However, as we approach reasonable values in San Diego, it seems like it will limit some legitimate would-be small-time investors as well.

    I guess another reason why cash is king.

    July 24, 2008 at 4:47 PM #246560
    (former)FormerSanDiegan
    Participant

    In a bubbly or declining market this rule is an excellent one. However, as we approach reasonable values in San Diego, it seems like it will limit some legitimate would-be small-time investors as well.

    I guess another reason why cash is king.

    July 24, 2008 at 9:39 PM #246541
    SD Realtor
    Participant

    gn –

    I believe that the buy and bail rule is a good thing for sure. However I do not know the specifics of it. HLS for sure would be the best resource to ask on this but I have not seen him post for awhile. Off the cuff I want to say the answer is yes to both of your scenarios “but” if John or Mike could come up with documented lease agreements it is unclear to me whether or not they could apply some or all of the rental income to the qualification process…

    Sorry for the lame answer but I not an expert on this bill yet so I don’t want to give false information.

    July 24, 2008 at 9:39 PM #246691
    SD Realtor
    Participant

    gn –

    I believe that the buy and bail rule is a good thing for sure. However I do not know the specifics of it. HLS for sure would be the best resource to ask on this but I have not seen him post for awhile. Off the cuff I want to say the answer is yes to both of your scenarios “but” if John or Mike could come up with documented lease agreements it is unclear to me whether or not they could apply some or all of the rental income to the qualification process…

    Sorry for the lame answer but I not an expert on this bill yet so I don’t want to give false information.

    July 24, 2008 at 9:39 PM #246698
    SD Realtor
    Participant

    gn –

    I believe that the buy and bail rule is a good thing for sure. However I do not know the specifics of it. HLS for sure would be the best resource to ask on this but I have not seen him post for awhile. Off the cuff I want to say the answer is yes to both of your scenarios “but” if John or Mike could come up with documented lease agreements it is unclear to me whether or not they could apply some or all of the rental income to the qualification process…

    Sorry for the lame answer but I not an expert on this bill yet so I don’t want to give false information.

    July 24, 2008 at 9:39 PM #246754
    SD Realtor
    Participant

    gn –

    I believe that the buy and bail rule is a good thing for sure. However I do not know the specifics of it. HLS for sure would be the best resource to ask on this but I have not seen him post for awhile. Off the cuff I want to say the answer is yes to both of your scenarios “but” if John or Mike could come up with documented lease agreements it is unclear to me whether or not they could apply some or all of the rental income to the qualification process…

    Sorry for the lame answer but I not an expert on this bill yet so I don’t want to give false information.

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