Hi Everyone!
Just a quick question....I have a friend that has decided to seller finance his property to a buyer on a 3 year term. During that time, my friend may want to purchase another property. I`ve heard that as long as you disclose to the bank that you`re receiving money to pay for your current mortgage, it will not hurt your debt ratio and you will be able to qualify for another property since that debt is being wiped out from your new buyer as he makes his payments.
Is this correct? Does anyone know of the documents to use to show the bank you`re receiving payment to cover the current mortgage? I don`t want to give him the wrong advice and not be able to qualify in the future.
Thanks!
Just a quick question....I have a friend that has decided to seller finance his property to a buyer on a 3 year term. During that time, my friend may want to purchase another property. I`ve heard that as long as you disclose to the bank that you`re receiving money to pay for your current mortgage, it will not hurt your debt ratio and you will be able to qualify for another property since that debt is being wiped out from your new buyer as he makes his payments.
Is this correct? Does anyone know of the documents to use to show the bank you`re receiving payment to cover the current mortgage? I don`t want to give him the wrong advice and not be able to qualify in the future.
Thanks!
