All Forum Posts by: Kevin Enos
Kevin Enos has started 1 posts and replied 2 times.
Post: Selling a home "Subject 2" the existing mortgage.
- Posts 2
- Votes 0
So I guess the obvious answer is YES. The old Sub2 mortgage will need to be calculated into the sellers DTI when qualifying for a new house/mortgage?
Related question: I've heard that if seller gives up and rents the house,... that lenders won't use the rental income to offset that house's mortgage for a whole year. I guess to prove that the rent is real and builds a bit of a track record.
Is that true? If so, for all mortgage types? Or only FHA,...? Thanks for the help!
Post: Selling a home "Subject 2" the existing mortgage.
- Posts 2
- Votes 0
My question is about when a home owner sells their home "Subject 2" - meaning deeding the house to someone else but leaving their existing mortgage in place. If that seller tries to buy a new home afterwards, will the mortgage payment on the house they sold "Subject 2" count against their DTI when qualifying for a mortgage on their new house? On one hand, they don't have income (like rent) to offset the old mortgage. But on the other hand, someone else IS making the payments. How would most FHA and Conventional Underwriters handle this? Thanks!