Can A Signed Lp Agrmnt Be Used To Secure A Mort?

[Carny 0]

I know I asked a similar question to this already, but I think this one is different enough to warrant it's own thread. How much effect would it have if I applied for a mortgage on a house that I already had a signed LP on? If the rent and purchase price were both higher would I pretty much be in, or would I still have to qualify pretty much exactly the same way?

[-Tony- 0]

How much effect would it have if I applied for a mortgage on a house that I already had a signed LP on? If the rent and purchase price were both higher would I pretty much be in, or would I still have to qualify pretty much exactly the same way?

You probably would not get it but, if you just showed them the lease it might help...

[MichaelC 160]

I'm confused. Do you already own the house? Are you talking about a sandwich lease? More details, please.

[Carny 0]

No, I don't own the house, I just mean if I wanted to buy one, and got someone to sign a LP (not exactly sure how I would do that), would that make much difference with the mortgage company?

[MichaelC 160]

If you don't own the house, you can't borrow money against it.

[-Tony- 0]

I think he is trying to say he wants to buy a house (conventional) and l/p to someone. His question would be will the mtg co be more apt to give him the loan or maybe even a lower rate (I added that)?

 

Having a signed lease wouldn't hurt you, showing them an option might. See, mtg contracts consider l/o an installment sale and the lending institution COULD invoke the due on sale clause.

 

Having a lease on the first property will help for a second house and could increase your income i.e.

 

75% of rent - mtg payment = income, positive numbers are income negative is income lost.

 

real life example

$750 (75% of $1000 rent) - $702 (Mtg payment) = $48 increase in my income

[FirstAmerican 0]

I think he is trying to say he wants to buy a house (conventional) and l/p to someone.  His question would be will the mtg co be more apt to give him the loan or maybe even a lower rate (I added that)?

 

Having a signed lease wouldn't hurt you, showing them an option might.  See, mtg contracts consider l/o an installment sale and the lending institution COULD invoke the due on sale clause.

 

Having a lease on the first property will help for a second house and could increase your income i.e.

 

75% of rent - mtg payment = income, positive numbers are income negative is income lost.

 

real life example

$750 (75% of $1000 rent) - $702 (Mtg payment) = $48 increase in my income

<{POST_SNAPBACK}>

Hello,

I am a loan officer and an ex underwriter. If this is an investment property, you definitely want to show a lease, because conforming guidelines will allow 75 percent of the income to lessen your DTI. Your primary residence can not have a lease against it because then it would not be your primary. If you have the choice between a primary residence mortgage and an investment property mortgage, you definitely want a primary residence mortgage. It is considered your primary by federal standards, (ie you can't be liable for mortgage fraud), if you stay in the property for 2 years and then lease it out. That should answer your questions. If not, please reply and I will explain further.

 

-Christopher

[Adam King (MI) 1]

Any true equitable interest, (Contract for deed etc) a pre-dated PA and 12 months of payments could easily warrant you a REFI on a sandwich lease.

Regards,

Adam

PS A subject to accomplishes this also. I have seen many refied.