Mortgage Lender requirements on existing property?
We are in the process of a loan application for a new primary residence. Mortgage broker asked us about what we plan to do with current residence (rent/sell). He mentioned the lender requirements of having at least 25% equity in the existing property in order for us to get approval on the new house.
I have a few questions:
1) Existing house was appraised @ $ 350K two years ago, obviously won’t be at that level now, but can I use a standard depreciation for the area to arrive at an estimated current value?
2) Is this a standard requirement for all lenders? I was prepared for the income/debt impacts of the rental, but not the equity.
Thanks in advance