Jasmine313404, Home Buyer in Atlanta, GA

Our current home is 40% underwater in Ga and we will use VA loan to purchase a new home. I have a renter but can't find a lender who will take

Asked by Jasmine313404, Atlanta, GA Mon Nov 19, 2012

lease. The current home was not purchased using VA.

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5
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Nov 20, 2012
VA Requirements for Conversion to an Investment Property

75% of the rental income can be used to offset the mortgage payment in qualifying if there is documented equity of at least 30% in the existing property (derived from an appraisal minus outstanding liens).

The rental income must be documented with:
• A copy of the fully executed lease agreement; and
• The receipt of a security deposit from the tenant and deposit into the borrower’s account.


Since you are 40% underwater, this section applies to you:

If the 30% equity in the property cannot be documented, rental income may not be used to offset the mortgage payment.
• Both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction; and
• 6 months of PITI for both properties is required to be in reserves.
1 vote
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Tue Nov 20, 2012
You are not finding a lender willing to accept the lease becasue VA underwriting guidelines will not allow what you are asking. VA will not allow the use of a lease unless there is at least 30% equity in your current home. No lender can override VA on that.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote
Jaquillia Jo…, Agent, Atlanta, GA
Mon Nov 19, 2012
There are a few questions I have to answer this more precisely but this my may be totally doable. I'm open to assist.

Jaquillia, Your Realtor!
0 votes
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Mon Nov 19, 2012
Don't answer here but the loan officer will need to know your debt versus income with the house note counting against you. Why? Because FHA allows higher debt ratios than VA. Even Freddie Mac is more forgiving than VA. The VA loan has two qualifiers. The first is your income versus debts and the houses. The second is your net income versus debts plus family maintenance plus utility costs. So, even if your income qualifies you from the stand point of the bank's retirement, you may not pass the VA requirement.
Check to see if you can qualify FHA if you feel like you have to move now. Check to see if you qualify Freddie Mac. You can always refinance later to VA when your income is stronger. There is another way but I won't put it in writing, so, you'll have to call me.
0 votes
Giovanni Rus…, Agent, Roswell, GA
Mon Nov 19, 2012
Most lenders are going to want some type of "rental history" over time to determine that you are actually obtaining that income.

This is a rather detailed conversation, I'd suggest contacting a few different local lenders than might give you some different opinions.

Feel free to contact me via phone/email and I can point you in a few different directions as well.

Good luck!!!

Giovanni M. Russo
Real Estate Consultant |

http://www.EasyAtlantaHomeSearch.com
mobile 404.310.9661 | direct 404.604.3936 | fax 404.604.3937
Keller Williams Realty of Buckhead, 2345 Peachtree RD NE, STE A, Atlanta, GA 30305
Giovanni.Russo@kw.com
0 votes
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