Mr.B 0 Report post Posted August 28, 2004 Not sure if this is the best place to ask my question, but it's one that I would really like the answer to. I have heard two different things when it comes to lenders giving credit to someone with an existing mortgage, that is trying to get a loan for a new home. Basically I have heard that if your doing a regular L/O Sandwich that the new lender will give them 75% credit toward their income / debt ratio. I have also heard that if the person has a Sub2 agreement thats say rented or L/O that they give them 100% credit toward their existing mortgage. But then I have also heard that it's only 75% as well. I would really like to know whats true. Thanks ~Mr.B Share this post Link to post Share on other sites
Kimberly 0 Report post Posted August 28, 2004 It's going to depend on the lender. Worse case would be 75%, allowing for vacancies, just like a regular rental property. But even at 75% it shouldn't keep them from being able to get a mortgage for their new home, assuming decent credit. Share this post Link to post Share on other sites