This comment is from distant memory of something I read on internet, so not sure if exact figure is correct, but I think mortgage lenders will require 30% equity in current rental if you want to get mortgage for single family home.
Reason is that people were gaming the system, renting their currently hopelessly underwater home at high mortgage rate they can't refi, then buying a better home, at lower purchase price and mortgage rate, and then when everything is approved, they have title and have moved in, suddenly decide to strategically default on the old home they just turned into a rental.
Would apply to new home or resale you buy now, but I think you might need to sell, even at a loss, if you want to late move up to single family home with a new mortgage.
Mortgage lending standards may ease in future, but this guy says "tight" mortgage lending standards now are what was considered normal maybe 5 years ago before bubble really took off: http://video.cnbc.com/gallery/?video=3000064256
Reason is that people were gaming the system, renting their currently hopelessly underwater home at high mortgage rate they can't refi, then buying a better home, at lower purchase price and mortgage rate, and then when everything is approved, they have title and have moved in, suddenly decide to strategically default on the old home they just turned into a rental.
Would apply to new home or resale you buy now, but I think you might need to sell, even at a loss, if you want to late move up to single family home with a new mortgage.
Mortgage lending standards may ease in future, but this guy says "tight" mortgage lending standards now are what was considered normal maybe 5 years ago before bubble really took off: http://video.cnbc.com/gallery/?video=3000064256