Reply
New Member
gabrielh
Posts: 1
Registered: ‎10-27-2012

Purchasing second home as primary residence with conventional loan. Guidelines/rules questions

Hi, hopefully someone can have some precise answers to my particular question here.

 

Here is our situation:

 

We plan on purchasing a second home to use as a primary residence.We can't sell the current one since we are slightly upside down so we plan on renting it after moving out for a couple years until we are at market value.

New house will be bigger/better etc... Amazing short sale deal and we are waiting on seller's bank approal.

 

We qualify with both house payments (PITI) and will have 6months reserves on both house as per Fannie Mae/Freddie Mac guidelines (good thing I read the whole Fannie Mae underwriting guide because none of the mortgage officers told me anything about that when getting the pre-aproval).

 

Now my question is: do we need to give some kind of proof to the underwriters that our current house will be rented out? We wont have time to find someone and rent it out/get a lease agreement between seller's bank approval and closing date.

Can we just put it up for sale instead? Will that satisfy the underwriters?Or...what are my other options?

 

Again our mortgage officers seems clueless about that and I dont want bad surprise during the underwriting process.

 

Thanks!

 

 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+