[Effective Demand]

[quote=CA renter]sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html
[/quote]

Fannie & Freddie have the “buy n bail” rule, so does FHA. The OP needs to realize that if their goal is to get a bigger house they must first sell, then rent, while saving for a bigger down payment. Even if the OP had 20% down payment they would still get denied because their current residence doesn’t have enough equity in it.

[Effective Demand]

[quote=CA renter]sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html
[/quote]

Fannie & Freddie have the “buy n bail” rule, so does FHA. The OP needs to realize that if their goal is to get a bigger house they must first sell, then rent, while saving for a bigger down payment. Even if the OP had 20% down payment they would still get denied because their current residence doesn’t have enough equity in it.

[Effective Demand]

[quote=CA renter]sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html
[/quote]

Fannie & Freddie have the “buy n bail” rule, so does FHA. The OP needs to realize that if their goal is to get a bigger house they must first sell, then rent, while saving for a bigger down payment. Even if the OP had 20% down payment they would still get denied because their current residence doesn’t have enough equity in it.

[Effective Demand]

[quote=CA renter]sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html
[/quote]

Fannie & Freddie have the “buy n bail” rule, so does FHA. The OP needs to realize that if their goal is to get a bigger house they must first sell, then rent, while saving for a bigger down payment. Even if the OP had 20% down payment they would still get denied because their current residence doesn’t have enough equity in it.

[Effective Demand]

[quote=CA renter]sdnerd:

Here is snipped from an article about the anti “buy and bail” requirement. It mentions that Freddie Mac requires the 30% equity, but I’ve heard other lenders are also requiring it.

Under the new Fannie Mae guidelines, in most cases, a borrower now must have at least 30 percent equity in his house to buy another. Otherwise, he cannot use the rent he says he will get to prove he can support two homes. The deterrence is that no one would want to walk away from a house in which he had a large amount of equity.

Also, the rental income the borrower claims now must be fully documented.

http://www.pe.com/business/local/stories/PE_News_Local_S_cheaters31.45b183a.html
[/quote]

Fannie & Freddie have the “buy n bail” rule, so does FHA. The OP needs to realize that if their goal is to get a bigger house they must first sell, then rent, while saving for a bigger down payment. Even if the OP had 20% down payment they would still get denied because their current residence doesn’t have enough equity in it.

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

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