[(former)FormerSanDiegan]

The down payment is typically (always ?) paid at/near the close of escrow anyway. Offering a large down payment at the end of escrow is essentially the same as offering a large down payment.

The deposit check is used as a sign of good faith. The larger it is the more the buyer puts at stake. There is always a risk that the buyer loses some of the deposit if they back out without cause (e.g. one of their contingencies).

The amount of deposit should depend on two things:
1. How much competition for the property
2. How much do you want to signal that you will follow through with the purchase. (strong buyer)

[(former)FormerSanDiegan]

The down payment is typically (always ?) paid at/near the close of escrow anyway. Offering a large down payment at the end of escrow is essentially the same as offering a large down payment.

The deposit check is used as a sign of good faith. The larger it is the more the buyer puts at stake. There is always a risk that the buyer loses some of the deposit if they back out without cause (e.g. one of their contingencies).

The amount of deposit should depend on two things:
1. How much competition for the property
2. How much do you want to signal that you will follow through with the purchase. (strong buyer)

[(former)FormerSanDiegan]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

You were mis-informed. The new law did not change these rules. However, new Fannie Mae conforming loan guidelines have been put in place, effective August 1. These restrict how converting your current residence to a rental impacts a loan on a new personal residence. They also may impact the ability to refinance when owning a principal residence and a rental.

IN short, you can count 75% of the rental income as income as long as you have 30% equity. Otherwise you count 0% of the rent.

Impact outlined here :
http://thegreatloanblog.blogspot.com/2008/08/huge-impact-on-2nd-homes-and-investment.html

And Additional Fannie Mae details here:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

[(former)FormerSanDiegan]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

You were mis-informed. The new law did not change these rules. However, new Fannie Mae conforming loan guidelines have been put in place, effective August 1. These restrict how converting your current residence to a rental impacts a loan on a new personal residence. They also may impact the ability to refinance when owning a principal residence and a rental.

IN short, you can count 75% of the rental income as income as long as you have 30% equity. Otherwise you count 0% of the rent.

Impact outlined here :
http://thegreatloanblog.blogspot.com/2008/08/huge-impact-on-2nd-homes-and-investment.html

And Additional Fannie Mae details here:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

[(former)FormerSanDiegan]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

You were mis-informed. The new law did not change these rules. However, new Fannie Mae conforming loan guidelines have been put in place, effective August 1. These restrict how converting your current residence to a rental impacts a loan on a new personal residence. They also may impact the ability to refinance when owning a principal residence and a rental.

IN short, you can count 75% of the rental income as income as long as you have 30% equity. Otherwise you count 0% of the rent.

Impact outlined here :
http://thegreatloanblog.blogspot.com/2008/08/huge-impact-on-2nd-homes-and-investment.html

And Additional Fannie Mae details here:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

[(former)FormerSanDiegan]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

You were mis-informed. The new law did not change these rules. However, new Fannie Mae conforming loan guidelines have been put in place, effective August 1. These restrict how converting your current residence to a rental impacts a loan on a new personal residence. They also may impact the ability to refinance when owning a principal residence and a rental.

IN short, you can count 75% of the rental income as income as long as you have 30% equity. Otherwise you count 0% of the rent.

Impact outlined here :
http://thegreatloanblog.blogspot.com/2008/08/huge-impact-on-2nd-homes-and-investment.html

And Additional Fannie Mae details here:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

[(former)FormerSanDiegan]

Isn’t part of the new legislation that rental income can no longer be used as income to qualify for a loan.

In other words, you have to basically qualify for both loans you’re carrying w/o counting rental income…or was I misinformed?

You were mis-informed. The new law did not change these rules. However, new Fannie Mae conforming loan guidelines have been put in place, effective August 1. These restrict how converting your current residence to a rental impacts a loan on a new personal residence. They also may impact the ability to refinance when owning a principal residence and a rental.

IN short, you can count 75% of the rental income as income as long as you have 30% equity. Otherwise you count 0% of the rent.

Impact outlined here :
http://thegreatloanblog.blogspot.com/2008/08/huge-impact-on-2nd-homes-and-investment.html

And Additional Fannie Mae details here:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

[(former)FormerSanDiegan]

[quote=sddreaming]This is for all you future Mira Mesan home owners. This is what Mira Mesa looks like in ForeClosureRadar. Each red dot is a foreclosure. Each blue spot is a house up for auction. Each green dot is a pre-foreclosure. Doesn’t look healthy to me.

[img_assist|nid=8532|title=Mira Mesa Foreclosures|desc=|link=node|align=left|width=100|height=77][/quote]

Thanks sddreaming.
I tried to count this but had a hard time. How many of these are blue (up for auction). How does that number compare to the inventory and pending ?

[(former)FormerSanDiegan]

[quote=sddreaming]This is for all you future Mira Mesan home owners. This is what Mira Mesa looks like in ForeClosureRadar. Each red dot is a foreclosure. Each blue spot is a house up for auction. Each green dot is a pre-foreclosure. Doesn’t look healthy to me.

[img_assist|nid=8532|title=Mira Mesa Foreclosures|desc=|link=node|align=left|width=100|height=77][/quote]

Thanks sddreaming.
I tried to count this but had a hard time. How many of these are blue (up for auction). How does that number compare to the inventory and pending ?

[(former)FormerSanDiegan]

[quote=sddreaming]This is for all you future Mira Mesan home owners. This is what Mira Mesa looks like in ForeClosureRadar. Each red dot is a foreclosure. Each blue spot is a house up for auction. Each green dot is a pre-foreclosure. Doesn’t look healthy to me.

[img_assist|nid=8532|title=Mira Mesa Foreclosures|desc=|link=node|align=left|width=100|height=77][/quote]

Thanks sddreaming.
I tried to count this but had a hard time. How many of these are blue (up for auction). How does that number compare to the inventory and pending ?

[(former)FormerSanDiegan]

[quote=sddreaming]This is for all you future Mira Mesan home owners. This is what Mira Mesa looks like in ForeClosureRadar. Each red dot is a foreclosure. Each blue spot is a house up for auction. Each green dot is a pre-foreclosure. Doesn’t look healthy to me.

[img_assist|nid=8532|title=Mira Mesa Foreclosures|desc=|link=node|align=left|width=100|height=77][/quote]

Thanks sddreaming.
I tried to count this but had a hard time. How many of these are blue (up for auction). How does that number compare to the inventory and pending ?

[(former)FormerSanDiegan]

[quote=sddreaming]This is for all you future Mira Mesan home owners. This is what Mira Mesa looks like in ForeClosureRadar. Each red dot is a foreclosure. Each blue spot is a house up for auction. Each green dot is a pre-foreclosure. Doesn’t look healthy to me.

[img_assist|nid=8532|title=Mira Mesa Foreclosures|desc=|link=node|align=left|width=100|height=77][/quote]

Thanks sddreaming.
I tried to count this but had a hard time. How many of these are blue (up for auction). How does that number compare to the inventory and pending ?

[(former)FormerSanDiegan]

100K down on properties in the 300-400K range in Clairemont/Mira Mesa for example would probably be close to break-even.

[(former)FormerSanDiegan]

100K down on properties in the 300-400K range in Clairemont/Mira Mesa for example would probably be close to break-even.

[(former)FormerSanDiegan]

100K down on properties in the 300-400K range in Clairemont/Mira Mesa for example would probably be close to break-even.

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