May 31st, 2010 12:49 PM by Sam Kader
Fannie Mae's recent policy change in July 2015 may help you becoming a new landlord. The new policy allows homeowners to convert their primary homes to rental investment properties and buy a replacement home with a new mortgage with no minimum equity stake in the current home. It used to be that you must have at least 30% equity in your primary residence if you wanted to convert it into a rental counting the rent toward your qualifying income for a mortgage on a new primary home plus 6 months reserve of liquid assets. This new rule will help in these set of circumstances: . Your current primary home is underwater or little equity. . You want a larger home to accommodate your growing family or want to live in a different neighborhood. . You pass our Pre-Approval test. Some of the benefits of owning investment property:
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