New Rules for Borrowers Who Don't Sell Current Home before Closing; Includes Pending Sale, Turning Residence into Second Home or Rental Property (Can you count the rental income?)

What does any red-blooded American do when they can't sell their current home and they're ready to close on a new one? Rent it, of course! No more. Unless the borrowers have a 30% equity position, they must qualify for both payments. AND, they need substantial cash reserves, an authentic lease, and to validate the legitimacy of the lease - they need proof of security deposit from the new tenant. Read update on 2^nd homes and what Freddie Mac says about it!

Purchasing a New House without Selling Current Residence
(Fannie Mae Announcement 08-13, June 13, 2008)

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