Assistant Secretary of Housing for FHA, Brian Montgomery, announced a new plan to govern against the "buy and bail" issue so prevalent in our industry today. Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. Brian suggested that this was occurring more frequently now because of rising costs in fuel, and families were targeting homes more near their place of employment, or simply that today's market has offered so many opportunities for great deals that they were taking those opportunities and bailing on their current home.
The new "temporary plan" will determine that the homeowner can afford both mortgages without rental income or that they stand in equity depth on the current home that they could easily sell it rather than default if they couldn't rent it.
There are two exceptions to this new temporary plan by FHA:
1. When a homebuyer is relocating with a new or current employer to an area recognizable to FHA as a commutable distance. In that case, the underwriter will use an executed lease agreement of no less than 12 months from day of close, and verification of a security deposit and/or first month's rent was paid to the homeowner to determine satisfactory offset of rental mortgage payment is actual.
2. The home owner has a 75% or better current Loan-to-Value in the current home determined by a residential appraisal dated no more than six MONTHS old, or by comparing the unpaid principle balance to the original sales price of the property.
Call for mortgage quote, Brad Lynch-469-450-2723
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Tuesday, September 23, 2008
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Testimonials & About Me
- Brad Lynch
- Frisco, Texas, United States
- In 2002, Brad Lynch began energetically consulting families in finding the right mortgage plan for their needs. In the beginning years, he was trained by a mentor who led by example, and this example was the epitome of integrity. Brad learned in the beginning by his mentor that many prospects may not consciously see what good intentions he has for them, do to the “wrap” many have caused w/in this industry, but always do what is right for the customer and in the end it will payoff. Integrity coupled with an energetic nature to nurture relationships, Brad has created clients for life. Through these clients for life, referrals have become the lifeblood of his business.
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