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Do NOT Always Need 30% Equity Cushion in Departing Residence

We often have buyers who are cannot qualify for a purchase b/c they have a loan against their current or “departing residence,” and these buyers lack sufficient income to support two mortgages. One way around this issue is to rent out the “departing residence” and then use that rent for additional income.

In most cases, as long as we get a copy of a one-year lease and proof that rent-checks are coming in and getting deposited, we can use the “departing residence” rent for income even if there is NO “30% Equity Cushion,” and even if there is NO “landlord experience.”

There are many misconceptions about “departing residences.” In addition, there is a huge variance from a lender to lender. Please feel free to call us for clarification.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167