Converting Primary to Investment Property Rule Change

Property values have come back and lending has become more relaxed on the rules when it come to renting out the property that you will be leaving to buy another home. Recently Fannie Mae and Freddie Mac, the two major investors of mortgages, have required that your property you are vacating needs to have 30% equity to be able to use the future rental income to offset the mortgage payment on that home. Now both Freddie Mac and Fannie Mae no longer require this equity and your house can even have negative equity and you will still be able to use the future rental income! But who doesn't have equity in their California home anymore? Not many are left underwater as so many were between 2007 and 2012. Your house isn't swimming with the

fishes anymore most likely unless you live in the five states which account for 31.4% of all underwater mortgage. Those states according to CoreLogic, a California-based financial services analytics  firm. are Nevada (23.1%), Florida (21.2%),  Illinois (16.8%), Arizona (16.8%) and Rhode Island (15.7%). And I only lend in California so most likely you above water. So call me today and see if you can get pre approved for your dream home. Time to move up!