Almateen Yazid's Blog (2)

FHA guidelines for conversion of primary residence to rental property

Thinking of converting my primary residence to rental. I don't think the guidelines have changed any since 2008 "Buy and Bail." I believe the guidelines for FHA are as follows:

at least 25% equity in residential home

80% of Gross rent applied from rental to be used for qualifying/additional income... or would they use (if filled) Sch. E?

1 year projected lease

proof of security deposits

Is that correct?



Added by Almateen Yazid on November 5, 2010 at 6:41am — No Comments

Debt to Income Ratios and AGI Adjusted Gross Income

This is my recent experience with Bank of America; however, it can happen with any lender.

I was recently denied a loan because of my DTI ratios. This would

have been my 2nd investment property purchase. I believe the reason is

because on my last investment purchase in 2009 I had 22,000 worth or

expenses that I deducted (above line deduction’s) on my sch. E and 1040.

You know..startup, repairs, cleaning, advertisement, etc... Thus,…

Added by Almateen Yazid on November 2, 2010 at 7:48am — No Comments

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