Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Sign in to follow this  
Mr.B

L/O Sandwich Vrs. Sub2 L/O..........

Recommended Posts

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

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
Sign in to follow this  

×
×
  • Create New...