Can you still buy a house and subsequently sell the house you own?
Does anyone have insight on the lender side with respect to buying a home before selling the primary residence? Our mortgage broker was telling us that lenders will no longer give mortgages out unless the total monthly mortgage payment of all combined mortgages does not exceed 45% of monthly income. So given that, I'm rather baffled how anyone around here can afford to buy a new house before selling their current house. Have you seen any contingent offers getting accepted? What do people do? by plumer_863_734 from Salt Lake City, Utah. Sep 27th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Lenders are cautious because of "Buy and Bail" schemes. This is where a buyer says he buying a new home, usually bigger and better, and says he's going to rent out his current home.. after closing on the new home, he moves in and let's the old one go back to the bank.. Because of this you absolutely need to prove to the lender you can handle both mortgage payments, and some lenders have additional guidelines that state they have to have so much equity before they will lend to someone with this scenario.. WilliamAcres.com
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
We have lenders that will give credit for rental income that is determined from an appraisal rent survey even if the borrower doesn't want to rent it out. .... 75% ot that amount will reduce your DTI. ... They also do not count the vacating property's mortgage payment in the borrowers DTI. .... These types of programs are out there. .... You need to shop around for one that lends in UT. ... Happy funding, Rudi
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