Posted on: 29th May, 2011 02:04 pm
my wife who is age 58 and myself age 67, have 200k equity in our house and 300k in retirement, savings, investments etc. we have credit scores over 800. we are both real estate agents who have earned very little in the last 2 years, although i earn 13k a year in social security, she earns 12k a year at a part time job and gets a 13k gift from her father every year.
we want to move to another state and buy a house but the only income we can show is social security and the annual gift from her father. her father is willing to co-sign but our mortgage broker says no one is allowed to do this anymore. we would put 40% down a house and stay within a 250k limit.
what hope do we have of financing a home and if we paid cash could we refinance or get a line of credit under these circumstances?
we want to move to another state and buy a house but the only income we can show is social security and the annual gift from her father. her father is willing to co-sign but our mortgage broker says no one is allowed to do this anymore. we would put 40% down a house and stay within a 250k limit.
what hope do we have of financing a home and if we paid cash could we refinance or get a line of credit under these circumstances?
Hi viewisle!
Welcome to forums!
As far as I know, your wife's father can co-sign for the loan if he has a good credit score and income. I haven't heard of any such law which states that no one can co-sign for a loan. As you have a good credit score and a stable income, I think you'll be able to qualify for a loan without a co-signer.
This community has a large number of lenders. You should seek a no obligation free mortgage quote from them and check out if anyone of them can help you with a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, your wife's father can co-sign for the loan if he has a good credit score and income. I haven't heard of any such law which states that no one can co-sign for a loan. As you have a good credit score and a stable income, I think you'll be able to qualify for a loan without a co-signer.
This community has a large number of lenders. You should seek a no obligation free mortgage quote from them and check out if anyone of them can help you with a loan.
Feel free to ask if you've further queries.
Sussane
Your mortgage broker has apparently never heard of FHA lending. Certainly, your father in law would be a viable cosigner for you under their guidelines (assuming all favorable data).
I'd have a hard time, as a lender, accepting the gift from him to your wife as income. If she's claiming it as income on your tax returns, then that legitimizes it, but otherwise, it's purely a gift and therefore not really income from a lending standpoint. Of course, if he's willing and able to cosign, per lending guidelines, that would pretty much eliminate the actual need to have those dollars counted.
Unfortunately, having a "stable income" doesn't mean much if that income is low; but a cosigner (again, think FHA) can provide the additional qualifying dollars needed.
I'd have a hard time, as a lender, accepting the gift from him to your wife as income. If she's claiming it as income on your tax returns, then that legitimizes it, but otherwise, it's purely a gift and therefore not really income from a lending standpoint. Of course, if he's willing and able to cosign, per lending guidelines, that would pretty much eliminate the actual need to have those dollars counted.
Unfortunately, having a "stable income" doesn't mean much if that income is low; but a cosigner (again, think FHA) can provide the additional qualifying dollars needed.
If you are planning to sell your current house, and take the 200k and use for down payment on a new home, depending on the value of the new home, your income may qualify you. If you don't have car payments, credit cards etc, and you are not buying a 800k house, it is possible. If you can verify the gift, as in tax returns etc, then you could use this income. Based on the income above of 38k year, you earn $3,166 a month. A lender will only count 45% of your income, called the debt to income ratio or DTI. So your TOTAL of all your payments including other debt and your tax and insurance payments, can not be more than $1,425 a month. Based on this amount, 300 for tax and insurance, you could afford a loan of 209k, yielding $1,425 Principle, interest, tax and insurance/month... Assuming you have no other car payment or credit card payments. Likewise, if you cannot prove the gift, your 25k income could get you 118k loan. (again, that you do not have other debts to pay). Long story short, if you are buying a reasonably priced home, and putting money down, you might not need the co signer. But like the others have said, you CAN use a co signer. Good Luck!
"http://activerain.com/blogsview/449665/fha-non-occupying-co-borrower"
Article I wrote on this topic
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Article I wrote on this topic
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