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The forums have been archived and are now read only.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
rj8654

Newbie - Potential Deal Assistance

Recommended Posts

Hi Everyone,

 

I emailed a bunch of Craigslist ads and this is what one of them responded:

 

"MY NOTE ON MY HOME IS $1624.67 MONTHLY AND THAT IS OUR TAXES AND OUR INSURANCE ON THE HOUSE. WHAT ABOUT DEPOSIT MONEY AND THAT KIND OF THING. WE WOULD LIKE TO TALK TO YOU IF YOU ARE STILL INTERESTED IN OUR HOME AFTER SEEING THE NOTE ON IT. HOW DO WE BUY A NEW PLACE IF WE STILL OWE ON THIS PLACE. WE ARE NOT YOUNG PEOPLE AND WOULD LIKE TO BUY OUR RETIREMENT HOME SOON." (they had the caps)

 

They wish to move from Pennsylvania to Texas as soon as possible.

 

How should I answer the questions about "How do they buy a new place if we still owe..."?

 

Thanks so much for anyones assistance.

 

Rich

Share this post


Link to post
Share on other sites

Rich, generally speaking, if a homeowner has a valid lease agreement on the property, a percentage of that rental income will be taken into consideration when they apply for their new mortgage on another property. Of course, there are many other factors that come into play that the lender will use to determine whether or not these folks will be approved.

Share this post


Link to post
Share on other sites

Rich, I would first advise these older people to not move to Texas, as it's 104 right now and they will likely die.

However...lenders typically look at it this way.... Their payment is $1624 a month... the lease payment will be..say...$1795 a month...take the 1795 x .75 = $1346.25 1624-1346.25=$277.75

The lender will ADD $277.75 towards their DTI to the new purchase.

In other words, they allow 75% of the lease payment.

So, as MC stated, NORMALLY they will qualify with the lease in place, but that depends on their DTI.

It's all very technical...

Share this post


Link to post
Share on other sites

×
×
  • Create New...