Not Counting Departing Residence PITI Once It Is Pending

We discussed how to buy a new home before selling an existing home last week (bridge loans, equity lines, FHA financing, renting out home) and we forgot to add one very important point: Ignoring PITI on an existing home once it goes “pending.”

Some lenders will ignore the PITI on an existing home (it will not affect debt ratios) if we prove it is a pending sale with contingencies removed.

This is a feature that we took advantage of often prior to 2008 and it is nice to see the option returning to the lending arena.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646