Howdy, I’ve recently heard from 2 Mortgage Brokers that if the sellers sell on a Land Contract that has an underlying mortgage that the income from that Land Contract will not be considered when they attempt to get a new mortgage for a new home. Its not considered untill the Land Contract has been running for a year. I’ll assume this is for Lease Options as well. Anyone have any insight on this??? Herbster
Herbster,
Remember that he who has the gold makes the rules!
Some lenders may require 12 months of payments to offset the mortgage expense. And some may not!
Back in the bubble years lenders could care less… but now they’re tightening the purse strings. I am not surprised to hear this. If you keep looking, you may find a lender who does not require the 12 months seasoning.
I don’t think you’re explaining it correctly to the lender… I would ask the lender if they allow rent income prior to 12 months…
Right on Michael, I’ll do that. I’ll also start looking at small local lenders in my area. Thanks, Herbster