Posted by Ed Garcia on June 24, 2001 at 13:31:46:
It would depend on how it affects their debt to income ratio. The loan would still be counted in their debt to income ratio, although it could be off set by showing you as rental income. In most cases the lender will give them 75% credit of the income that you will be paying them as your payment, or market rents of the area, which ever is lower.
Although the property would be sold on a wrap-around, lenders are not great to react to creative financing, because the loan is still in the seller’s name, and the seller is still liable for it.