QUOTE (toy @ Jun 1 2010, 02:49 PM) If we buy a home from someone via an agreement for sale and they go to buy a new owner occupied home do they need 5% or 20% down?
I am hearing that they will need 20-25% down since they still have a mortgage in their name....
probably as they now buy a 2nd home / investment !!
HOWEVER: they have sold the property (in the future) and as such the buyer (you) are on the hook for mortgage payments .. i.e. they`d argue that they have income to offset their mortgage obligations !!
This is likely a case where a good mortgage broker differentiates him (or her)self from the merely mortal !
I am hearing that they will need 20-25% down since they still have a mortgage in their name....
probably as they now buy a 2nd home / investment !!
HOWEVER: they have sold the property (in the future) and as such the buyer (you) are on the hook for mortgage payments .. i.e. they`d argue that they have income to offset their mortgage obligations !!
This is likely a case where a good mortgage broker differentiates him (or her)self from the merely mortal !
The answer to your questions is both. It depends whether they can qualify for a second home or what is in the AFS in which case they can put down minimum 5%. If that is not possible then they have to put 20% down in which case their purchase is considered a rental property.
I hope this helps.
Conrad.
QUOTE (toy @ Jun 1 2010, 02:49 PM) Hi Everyone...
If we buy a home from someone via an agreement for sale and they go to buy a new owner occupied home do they need 5% or 20% down?
I am hearing that they will need 20-25% down since they still have a mortgage in their name....
Please clarify if you can....
Thank you!
I hope this helps.
Conrad.
QUOTE (toy @ Jun 1 2010, 02:49 PM) Hi Everyone...
If we buy a home from someone via an agreement for sale and they go to buy a new owner occupied home do they need 5% or 20% down?
I am hearing that they will need 20-25% down since they still have a mortgage in their name....
Please clarify if you can....
Thank you!