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Clearwater Florida Move-Up Homebuyers Face New Lending Challenges This Spring

New mortgage guidelines squeeze move-up buyers Clearwater Florida – When a homeowner sells his Clearwater house and decides to buy a new one, there are 3 basic options for the residence — sell it, keep it, or rent it. While we’ve seen lots of changes in our Pinellas County school zoning this past year we also have had less well known changes in financing your next Pinellas County home.

Unfortunately, no matter which path they choose, Clearwater Florida move-up homebuyers in need of a new conforming mortgage will find qualifying for a Tampa Bay home loan to be more difficult this season than in the past.

Tampa Mortgage guidelines are dramatically tighter for people “carrying two mortgages”.

Among the changes this spring’s buyers face:

Selling your Clearwater home when it’s your primary residence
If you plan to close on your new home prior to the closing of your existing home — even if it’s only by a day — both payments must be listed as monthly debts on your mortgage application. This will disqualify the majority of homebuyers.

Converting your Clearwater house to a second homeIf your current home has less than 30 percent equity in it, your mortgage application for the new home will not be approved unless you can show 6 months worth of mortgage payments + taxes + insurance in reserves for the current home and new home combined.

Converting your house to an investment propertyIf your current home has less than 30 percent equity in it, any rental income derived from a tenant is disallowed on your mortgage application for the new home.  You must still count the mortgage payment + taxes + insurance as a monthly debt.

Related article:

Tips for Selling your Clearwater Homes

Pinellas County School Information

In other words, being a move-up buyer in Clearwater Florida isn’t as simple as it used to be.  New lending rules make buying a new home an exercise in timing and financial planning.  And the rules are expected to get tougher, too.

Therefore, if you expect to be buy a larger home in Clearwater in the next 12 months, consider moving up your timeframe or — at least — planning ahead for it.

Understanding the new Tampa mortgage landscape and how they can influence your upcoming purchase may be the difference between getting approved for a home loan, and getting turned down.

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Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Clearwater St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.

About Cyndee Haydon

Cyndee Haydon, Realtor with Future Home Realty specializing in luxury waterfront and beach homes of Clearwater Beach - St Pete - Tampa Bay area with her husband and partner, Jack Haydon Cyndee's Google Profile

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