Conversions

Q. My Borrower owns and has started renting their previous residence in California. How do I document the 30% equity requirement?

A. Directors will permit up to 75% of the rental income to be used to offset the mortgage payment in qulaifying if there is 30% equity in the existing property( derived from a full appraisal, minus the outstanding liens).

Q. When a borrower is retaining the home they are departing, how many months reserves do we need?(5.22.13)
A. 6 months reserves is required per property, for a total of 12 months .