Posted on: 05th Jul, 2011 12:23 am
Hi… me and my partner are planning to buy a home. But, my partner is a contractor and does not have a verifiable income. But my income is verifiable. We want to avoid a non-verifiable income loan. Can we get a mortgage where both our incomes will be considered?
If your partner cannot verify his income, it will be difficult for him to qualify for any kind of loan. It will be better if you could apply for a loan on your own. In such a situation, your income and your credit credit record will be taken into consideration.
True - only income that can be verified can be considered in qualifying for a mortgage loan.
You'd need to get a "Stated Income" loan, so both incomes can be used to qualify. The risk is greater to the Lender, so you'll pay a higher interest rate and probably have to put more money down. And there aren't very many State Income programs available anymore - however, some are still available and a "contractor" job is the type of candidate that fits Stated Income parameters best.
As an addendum to what Raymond provided, let me add that in order to qualify for a Stated Income Loan product, you'll both have to have exemplary credit, with scores of 720 and up, in all likelihood. Depending on where you're located, you may or may not be able to find such a loan available.