I used to know investment loans as well as any lender out there. Ask me anything, I could tell you. Now, since it all changes on a minute by minute basis (seemingly) I don’t know what to think. Read this email I just received from someone under contract to purchase an investment property right now:
Fannie/Freddie changed the rules about the rental propertyI already own. Apparently, since I don’t have 30% equity or greater in the Grandview duplex they don’t count the rental income, HA! But of course they still count the mortgage payment, which destroys my debt to income ratio.
I’m still traking this down, of course. But this is getting insane. This isn’t even reasonable. He’s owned the properties for years but keeps them leveraged for capital growth. Not counting any income from the properties but counting debt isn’t even reasonable.