Lending tightening is continuing!  I just had one bank notify us they are no longer counting rental income for investment properties for purchase & they will not count income for currently owned properties if the properties were recently purchased and they are not on the latest tax returns.

 

So, let's look at an example.  A client with 800 credit scores, $100,000 reserves and a DTI (debt to income) ratio of 40% wishes to purchase an investment property for $300,000 at 80% LTV (loan to value) and it cash flows $5500/month, which more than covers the expenses.  This client will NOT qualify with this bank because they will NOT count the rental income of $5500.  This is ABSURD!

 

I hope this is the only bank going in this direction, because we need to FINANCE homes to recover from this real estate mess. 

 

OBAMA!!!  SOS!  We need these banks to STOP tightening their belt!

 

 

 

Ann Sabbagh

 

Vice-President

Seacoast Mortgage Corporation

401-305-6906 or 508-243-1190

Residential & Commercial Financing

MLO10920

 

 

"When you choose me as your mortgage consultant, you also choose a financial planner who cares about YOUR financial strength."

Ann Sabbagh, Vice-President

"The BEST compliment is a client referral: Thank YOUUU!"

Seacoast Mortgage Corporation

401-305-6906 or 508-243-1190

Residential & Commercial Financing

MLO10920

RIAR: teacher for "The Mortgage Course"; "Valuation of Commercial/Investment Real Estate"; "Reading Financial Statements"

 

"When you choose me as your mortgage consultant, you also choose a financial planner who cares about YOUR financial strength."

 
This post has been included in Rhode Island Real Estate News Washington County, RI Real Estate News Westerly, RI Real Estate News
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5 Comments on WHATTTT???! A lender is NOT counting rental income anymore for purchases!!!! Say whatttt???

DEC
23
2009
288,781 Points 38 Featured Posts Outside Blog

I had a funky approval today due to the newer updated DU. We can only hope it doesn't get worse. I can deal with change, but some stuff is ridiculous.
10:31pm • #1

Right - we saw something like this happening about a year ago in Hagerstown.  Local bank would not write a loan for a well-established investor who owns about a dozen properties because they would not count his rental incomes.  Um, well, that's how he makes his living!
10:46pm • #2
DEC
24
2009
873,962 Points Outside Blog Called Shot Master

Hi Ann,

Thank you for sharing an exscellent post. Merry Christmas!

John Pusa
12:47am • #3
161,965 Points 5 Featured Posts Hit Router

Eventually, the pendulum will swing back in the other direction.  It sucks right now!
11:39am • #4
997,422 Points 4 Featured Posts

Ann, that has to be changed. We are going from one end to another. Merry Christmas to you and your family though and hope you have super selling 2010.
9:36pm • #5


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Ann Sabbagh, President, Sr. Loan Officer

Pawtucket, RI

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Seacoast Mortgage Corporation, RI, MA & CT

Address: 267 NEWPORT AVENUE, PAWTUCKET, RI, 02861

Office Phone: (401) 475-1600 x 306

Cell Phone: (508) 243-1190

Email Me

Seacoast Mortgage: Your place for:RI loans, MA loans, CT loans, FL loans, commercial loans, residential loans, FHA, VA, USDA, 100% financing, FSBO (for sale by owner) assistance. Find a loan in RI, find a loan in MA, find a loan in CT,RI mortgages,CT mortgages,FL mortgages,MA mortgages. Do you qualify for a loan? At Seacoast Mortgage, we qualify you within your means. What you can afford is different than what you qualify for. Call us today!


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