Posted on: 09th Apr, 2012 07:25 pm
I'm really at my wits end here. I finally got a shot of buying a small home.( $80,000 ) I don't make much but it’s just enough to afford a small home. I also have excellent credit, and everything looks good, but……..when the lender factored in my DTI ratio he took into consideration the home I currently live in. It seems the taxes and insurance put me over the edge, making it impossible to get a loan. So the lender told me I had to “Quit Claim†to be eligible for a $65,000 loan w/ 20% down. I don’t want to do it, but it seems like this is my only choice. The mortgage payment would only be $530 a month. A rental in my area goes for $1100. I cannot afford this on my own. My boyfriend and I also decided to part ways, but we are still friends.
We bought the home 7 years ago. I asked that he put me on the deed in case something happen to him (then I would have a home), and apparently if you are on the deed, you must also be on the mortgage in Florida. So I signed the mortgage. He alone signed the promissory note. (I didn’t even have a job at the time). I am not on the note, just the mortgage and deed. Now three lenders have already told me to Quit Claim to qualify for the home to lower my DTI ratio. But I’m not getting a real definitive answer. We all know prequalification’s are given out like candy nowadays, and I would hate to take Quitclaim because a “lender†told me so, then come to find out after the fact, (and the $400 doc stamp that I am being charged at the clerk’s office) that I will not qualify because I am still on the mortgage. Does underwriting look at this? I am not liable for the debt (the note). And refinancing or having him sell is NOT an option. He does not want to do this. Honestly this is my last step to qualify but I do not know who to believe. There is also a due on sale clause in the mortgage. Should I at least contact the lender and let him know? Are the lenders right? The mortgage is also not showing on my credit report. Please any advice would help.
We bought the home 7 years ago. I asked that he put me on the deed in case something happen to him (then I would have a home), and apparently if you are on the deed, you must also be on the mortgage in Florida. So I signed the mortgage. He alone signed the promissory note. (I didn’t even have a job at the time). I am not on the note, just the mortgage and deed. Now three lenders have already told me to Quit Claim to qualify for the home to lower my DTI ratio. But I’m not getting a real definitive answer. We all know prequalification’s are given out like candy nowadays, and I would hate to take Quitclaim because a “lender†told me so, then come to find out after the fact, (and the $400 doc stamp that I am being charged at the clerk’s office) that I will not qualify because I am still on the mortgage. Does underwriting look at this? I am not liable for the debt (the note). And refinancing or having him sell is NOT an option. He does not want to do this. Honestly this is my last step to qualify but I do not know who to believe. There is also a due on sale clause in the mortgage. Should I at least contact the lender and let him know? Are the lenders right? The mortgage is also not showing on my credit report. Please any advice would help.
Hi floridasunshine!
Welcome to forums!
If your name is on the mortgage, it will be considered while calculating your DTI ratio. Signing a quitclaim deed will not remove your name from the mortgage. So, before signing it, have a word with an attorney and take his opinion in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your name is on the mortgage, it will be considered while calculating your DTI ratio. Signing a quitclaim deed will not remove your name from the mortgage. So, before signing it, have a word with an attorney and take his opinion in this regard.
Feel free to ask if you've further queries.
Sussane