Current Principal Residence Pending Sale
If the borrower's current principal residence is pending sale, but the transaction will not close with title transfer to the new owner prior to the subject transaction, and the borrower is purchasing a new principal residence, the current PITIA and the proposed PITIA must be used in qualifying the borrower for the new mortgage loan.
However, Fannie Mae will not require the current principal residence's PITIA to be used in qualifying the borrower as long as the following documentation is provided:
- the executed sales contract for the current residence, and
- confirmation that any financing contingencies have been cleared.
For additional information, see B3-6-06, Qualifying Impact of Other Real Estate Owned.