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?
Additionally, do I have to show that it was rented for that previous taxable year (2010) Sch E. or...when applying for the loan and underwriting
purposes... 2011, have a lease/tenant and proof of 1st's months rent and
security deposit at THAT TIME?
Lastly... my primary residence was secured via VA. Would the conversion conflict with VA since I would be trying to get FHA financing for owner occupied?
Thanking you in advance!