Feb 11 2016 13081 1

Dated: 02/11/2016

Views: 891

Did you know that Fannie Mae will allow a home buyer to close on their new home without selling their current home first…AND...not require that housing debt to be mixed in their total debt to income ratios for qualification?!?!  Deep in the fine print and dusty folds of Fannie Mae guidelines lies a little known secret that allows a client who is selling their home and whose buyer is fully Clear to Close. 

If the borrower’s current principal residence is pending sale, but the transaction will not close with title transfer to the new owner prior to the subject transaction, the borrower is purchasing a new principal residence, the total obligation (PITI + MI + HOA, etc) must be used in qualifying the borrower for their new mortgage loan.  HOWEVER, Fannie Mae will not require the current principal residences' total obligation to be used in qualifying the borrower as long as the following documentation is provided::

The executed sales contract for their departure residence, and

Confirmation that the buyers of that home are Clear to Close in their Underwriting Process

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Danny Crow

As a real estate agent since 2000, I enjoy helping others discover Central Texas and make a home here. Real estate in Austin offers many options to home buyers and I will make sure you explore every o....

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