25 Sep 08 
Buy and Bail and FHA’s Response
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So wouldn’t you know FHA found that the original rule for Buy and Bail was a little too steep and left many homeowners stuck in their home with no other course of action than to sell or head towards foreclosure.
If you are not quite sure what Buy and Bail means see my other articles on Buy and Bail Rules and Buy and Bail Part I and Part II
Now on to the new adjustments and how to work with this new rule to get what you want out of your Real Estate transaction.
- To be eligible to purchase a home using a FHA loan you would need to be relocating for a new job.
- The new home must reside outside a reasonable distance from your current residence and this is based upon underwriter’s discretion.
- Must have a full 1-year lease agreement from the closing date forward.
- You will need to show evidence of rental/lease by showing security deposit as cashed and/or first months rent.
- The adjusted equity position in your existing home is now 75% up from 70% but the appraisal can only be 6-months old or less. Now there is a small wrinkle in there that states you can show you put a 25% down payment based upon original purchase price but they may still require an appraisal to support the purchase price. Again the underwriter’s discretion.
Now the above rules are a good start but be prepared to have your potential rental income put under a microscope. FHA is extremely concerned about inflated rental agreements and has put in extra measures on the underwriting side of things to prevent fraud in this area.
Good news is that this amount of income that can be applied to your loan application for potential rents may be increased 15% in some cases and that will really help in qualifying for your new home.
Just in case you missed it, there are a couple ways to play the game:
- Add a non-occupying Co-borrower to you loan, must be a relative, to help you qualify.
- Make enough to cover both mortgage payments, current home and the new one.
- Short sale your home and buy before the negative reports on your credit report.
As always use a true Real Estate or Mortgage Professional because what you don’t know will hurt you in the end NOT the Realtor or Loan Officer.
Brent Lane
The Lane Group
Tags: buy and bail, closing date, co-borrower, existing home, fha, fha loan, home loan, Homes for Sale, lease agreement, loan eligibility, loan officer, loan qualifications, mortgage info, mortgage professional, Real Estate, rental agreements, rental income
20 Sep 08 Real Estate Incentives
Below are home builder incentives and information about Arizona real estate. All information was found in the Arizona Republic on September 20, 2008. The home builder incentives and events are considered reliable, but please contact each home builder or visit their website for more information about their mentioned event, incentives, location, sales pricing and disclaimer(s).
If specific information about a home builder’s community or new home pricing is not mentioned it was not in the paper or the home builder has several Arizona communities.
Single-family
William Lyon Homes – Experience the pride.
Meet your MATCH at www.lyongateaz.com
Home + Family = Love
Tags: condominiums, condos, incentives, new home, Real Estate, single family
16 Aug 08 Real Estate Inventives 8-16-08
Below are home builder incentives and information about Arizona real estate. All information was found in the Arizona Republic on August 16, 2008. The home builder incentives and events are considered reliable, but please contact each home builder or visit their website for more information about their mentioned event, incentives, location, sales pricing and disclaimer(s).
If specific information about a home builder’s community or new home pricing is not mentioned it was not in the paper or the home builder has several Arizona communities.
Tags: green, Home Builders, incentives, new homes, Real Estate, savings
