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Unique Situation

Posted on: 24th Apr, 2012 10:40 am
I'm trying to get approved for a loan to purchase a home, but I've been running in to different hurdles talking with different brokers. Our target price is above FHA limits, so FHA is out of the question. Looking for a 30 year fixed, 7/1 ARM, or any other options. My plan is to put 5% down, with part of the money being gifted. So talking and working with different brokers/lenders, some can and some can't work with this. The other major hurdle I have is I'm on 2 mortgages with my parents that are rentals. My parents added me to these to help build my credit when I was in college, but now it's biting me in the butt. I am in the process of getting my name off of both, but might take some time. One of the mortgages, we got the lender to agree to just remove my name, which I understand that is very rare. My parents have done quite a bit of business with this bank and they realize the situation and the reason I was added. The second of the mortgages looks like my parents will have to refi to get my name off. When working with different brokers/lenders, it appeared one of them were able to have these loans not count against me, but the others say they'll have to. On my taxes, I don't claim the interest or income from these properties. So my question regarding this is, is there any way to get these loans not to count against me? My last question is regarding PMI. I have a few rental properties under my name that carry mortgages. Is it the PMI company that requires the 6 month reserves for rentals, or the lender, or both? My thought is to try to find a lender/broker that have products like "Single Cash Premium Mortgage Insurance", "Single Financed Premium Mortgage Insurance", or "Lender Paid Mortgage Insurance (LPMI)". I'm wondering if reserves are required by just PMI, not the lender, then if I do a Single Cash Premium Mortgage Insurance, will I still need to show reserves? I'm trying to find a lender/broker that can help me. So far, different ones can help with different things, but not all. Anyone know someone I can work with? I live in Colorado Springs, CO if that makes a difference. Thanks in advance!
hi jhyoo!

welcome to forums!

with 5% down, you will have to go for a private mortgage insurance in order to qualify for a conventional mortgage. moreover, as you're on two mortgages already, it may be difficult for you to get qualified for another mortgage. you can ask your parents to refinance the mortgage in their names so that you are not liable for it. as far as i know, it is the lender who wants 6 months reserves in your bank account.

feel free to ask if you've further queries.

sussane
Posted on: 25th Apr, 2012 08:32 pm
Thanks Sussane.

Do you know if the 6 months reserve is negotiable?
Posted on: 30th Apr, 2012 03:58 pm
Hi jhyoo!

Welcome back to the forums!

Well, I don't think you will be able to negotiate the 6 months reserve criteria. Nevertheless, there is no harm in trying. So, you should contact your lender and try to negotiate with him.

Feel free to ask if you've further queries.

Sussane
Posted on: 01st May, 2012 12:17 am
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