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    • No Shortcuts to the Top: Climbing the World's 14 Highest Peaks
      No Shortcuts to the Top: Climbing the World's 14 Highest Peaks
      by Ed Viesturs, David Roberts

      "Ed and David Roberts have given the reader a never before look into the climbing and personal life of America's icon of mountain climbing. This includes the mental methods of climbing with various partners, dealing with circumstances outside of the sphere of control, and the decisions impacting self and family."

    • First Things First
      First Things First
      by Stephen R. Covey, A. Roger Merrill, Rebecca R. Merrill

      "It shapes a lifestyle, a discipline full of virtue and enchantement. Think of it as a trip to Tibet packed with a senior executive course on people skills - a profoundly humanistic work for the self who's also a contemporary citizen of the world."

    • The Lies About Money: Why You Need to Own the Portfolio of the Future
      The Lies About Money: Why You Need to Own the Portfolio of the Future
      by Ric Edelman

      "Ric Edelman does a good job of discussing the perils of mutual funds and what to look out for when investing. His sections are short, simple, easy to read and provide a relatively straightforward explanation of the topics."

    • If You Don't Make Waves, You'll Drown: 10 Hard Charging Strategies for Leading in Politically Correct Times
      If You Don't Make Waves, You'll Drown: 10 Hard Charging Strategies for Leading in Politically Correct Times
      by Dave Anderson

      "Even if you disagree with the approach at times, you won't be able to deny the truths contained and the relative strategies that Dave recommends for curing our businesses and our country. They work, when applied properly and consistently."

    • The Truth About Money 3rd Edition
      The Truth About Money 3rd Edition
      by Ric Edelman

      "A comprehensive guide to the different methods and options available to the individual investor, along with some useful information regarding budgeting and purchasing"

    • Integrity: The Courage to Meet the Demands of Reality
      Integrity: The Courage to Meet the Demands of Reality
      by Henry Cloud

      "The basic assumption here is that "integration" or "wholeness" of character is a necessary component in order to reach one's maximum potential both personally and professionally, and that character is not fixed or unchangeable. This book is extremely inspirational and informative. It is a roadmap to success and happiness."

    My Top 10

    My Top 10 Favorite Truths!

    1) You cant predict the future.

    2) You can only control yourself and your choices...and some days that is even a stretch!

    3) Happiness is a choice.

    4) Anything is possible!

    5) Perception is Reality.

    6) Expectation, determines outcome.

    7) Honesty, is the only policy.

    8) Every Failure is an opportunity for growth.

    9) Tomorrow is not promised to you.

    10) Family is the most important thing in the world, and can be found anywhere in the world.

    Favorite Quotes

    My Favorite Quotes!

    1) Imagination is more important than knowledge.-Albert Einstein

    2) What you get by achieving your goals is not as important as what you become by achieving your goals.-Zig Ziglar

    3) It is wise to keep in mind that neither success nor failure is ever final.-Roger Babson

    4) Whether you think you can or whether you think you can't, you're right.-Henry Ford

    5) How we spend our days is, of course, how we spend our lives.-Annie Dillard

     

    « 10 Things You Need to Know About Appraisals | Main | What is FHA Changing & Why »
    Monday
    Jun212010

    ASK THE EXPERT (Question Of The Week)

    DateMonday, June 21, 2010 at 2:51PM

      

    It seems that not a week goes by that I don't get a call from either a buyer or a real estate agent asking if we can use a lease agreement and proposed rental income to offset an existing house payment. The answer is a very clear.... "It depends". The guidelines used in determining useable rental income to help offset the mortgage payment on a departing residence has changed.  Here is the condensed version of the underwriting guidelines.

    As always, I am here to help you and your clients.  Don't hesitate to let me know if you have any questions about this specific topic or anything related to mortgage or real estate.  Let our knowledge, expertise and in-house control help you and your buyers avoid "The OOPS Factor"!

    Underwriting Guidelines Up-Date

    Here are the basic guidelines of being able to use a lease agreement to offset a current house payment when a FHA or Conventional loan is being used to finance the new property:

    FHA Loans - 75% of the gross rental income can be used in qualifying the buyer when there is SUFFICIENT EQUITY IN THE VACATED PROPERTY. If the homebuyer has a loan to value ratio in the vacating property of at least 75%, as determined by either a current (no more than 6 months old) residential appraisal or by comparing the unpaid principal balance to the original sale price of the property. The property must have a properly executed lease agreement for not less than a 12 month period after the loan closing. In addition, the underwriter must document the receipt of a security deposit and/or first months rent into the buyers bank account. The underwriter will then be able to use 75% of the gross rent, minus the PITI payment and then include any negative or positive cash flow in either the buyer's debt or income (whichever applies)

    Conventional Loans - 75% of the gross rental income can be used in qualifying the buyer when there is SUFFICIENT EQUITY IN THE VACATED PROPERTY. If the homebuyer has a loan to value ratio in the vacating property of at least 70%, as determined by either a current (no more than 6 months old) residential appraisal or by comparing the unpaid principal balance to the original sale price of the property. The property must have a properly executed lease agreement for not less than a 12 month period after the loan closing. In addition, the underwriter must document the receipt of a security deposit and/or first months rent into the buyers bank account. The underwriter will then be able to use 75% of the gross rent, minus the PITI payment and then include any negative or positive cash flow in either the buyer's debt or income (whichever applies).

     Michelle Coolidge

    Sr. Loan Officer / Certified FHA Underwriter

    Cobalt Mortgage - MLO #176580

     

     

     

     

    AuthorMichelle Coolidge | Comment1 Comment | Print ArticlePrint Article

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    Reader Comments (1)

    Thanks for sharing this helpful info!


    Croydon Lettings

    November 28, 2011 | Unregistered Commenterjustmoveout

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