Thursday, September 25, 2008

The Changes Just Keep Coming!

Well, guess what? Another road block. FHA just came out with a new guideline regarding the rent of your current residence. The Buy & Bail policy. If you currently own your home and want to rent it out to buy another one, in the past, you'd be able to use 90% of the rent to offset the payment so you could qualify for more. The new rule basically says, you cannot do this unless you have 75% equity in your current home, proven by an appraisal within the last 6 months or you are relocating jobs or residences out of the area. So if you are in a situation where you don't have any of these conditions met, you will have to qualify for the new home provided you can qualify with both debts against you.
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