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Old 02-15-2017, 06:07 AM
 
1 posts, read 534 times
Reputation: 10

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Good morning!

I am in the process of buying a new home and have ran into a snag with my lender. I'm hoping someone on here can help.

I have a rental property with a tenant who has a lease till 6/15/2017. The Underwriter stated they cannot accept a lease through 6/15/2017, it must be the full year. I've requested the property management company to start the process early, but the lady who handles this is out on vacation (of course). I've asked for someone else to work on this due to the timing of closing, next week , and hopefully I will hear from them soon.

My question is...

1. Has anyone ever raninto this issue? If so, what were the result?
2. Will they deny my loan because of this?
3. The tenant has been there for 2 years and hasn't indicated their leaving. In the event they don't sign a lease, the property management company will work on finding a new tenant, typically 3 months prior, so there isn't a break in income. Also, even if I didn't have a tenant in the property, my debt to income ration is way below the standard 43%. Can someone explain why this is an issue?

I appreciate all feedback.
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Old 02-15-2017, 06:36 AM
 
Location: 89052 & 75206
8,147 posts, read 8,348,424 times
Reputation: 20080
If the rental property has a loan on it, the payment is part of your debt and will be factored in to achieve the new mortgage approval and new mortgage rate. Hopefully you will hear back from the PM company very soon. Are you offering your tenant an early lease extension/renewal at a favorable new rent amount?
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