*************************
My beautful wife Jennifer and I and John and Shannon at the San Diego Charger's game.
*************************
There have been yet more stringent changes in guidelines in regards to cash reserve requirements for conventional home buyers. Here are those changes:
Primary Residence:
Borrower(s) must have 6 months PITI (principal, interest, taxes and insurance) in reserves regardless of whether rental income is used to qualify the borrower(s).
Second Home:
Borrower(s) must have 2 months PITI in reserves for subject property. In addition,
Borrower(s) must have additional 2 months PITI in reserves for each other financed second home and/or 1-4 unit Investment Property in which the Borrower(s) have an ownership interest OR on which the borrower is obligated.
Investment property:
Borrower(s) must have 6 months PITI in reserves regardless of whether rental income is used to qualify the borrower(s). In addition, Borrower(s) must have additional 2 months PITI in reserves for each other financed second home and 1-4 unit Investment Property in which the borrower(s) have an ownership interest OR on which the borrower is obligated.
These guidelines apply to the home buyers with the best credit scores, so you can imagine the scrutiny that less qualified buyers will have.
Every time I get these guideline changes, I realize that FHA, VA and the other first time home buyer programs are in fact easier.
Enjoy your weekend!
************************
