This is something that came across my desk from Mark Sheck, Senior Loan Officer of Cherry Creek Mortgage. Changes in lending are being made for people trying to rent their existing home to purchase a new primary residence. With all the shake up in the market and mortgage industry, it is no wonder they are trying to regulate this new tactic as people want to take advantage of the lower prices and get more house for less money. Here are key points to the new Federal Housing Administration (FHA) guidelines:
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Here are the 7 things you need to know about these changes:

1. This is a temporary change, and effective as of September 19th, 2008.
2. The borrower must be relocating to a new job location.
3. The new home must be outside reasonable commuting distance from the current residence (UW's discretion).
4. The borrower must have a fully executed lease with at least a 1-year term from the closing date of their new mortgage.
5. The borrower must document receipt of the security deposit and/or first month's rent.
6. Current residence must have an LTV of 75% or less.
7. The value of current residence can be proved with the following:. * Appraisal no more than 6 months old, or * Original HUD-1 and current bank statement.
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Thanks to Mark Sheck from Cherry Creek Mortgage for keeping us up to date on these changes!!

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!