Pooling resources

soniaholder · Joined: 05 Mar 2007 Posts: 1 1.39 Dollars($)

can two people pool their resources to qualify for a mortgage? We are single parenting mothers, she has been abandoned by her husband and i am divorced, she has 3 kids and i have 2, she pays 600 in rent and i pay 952.75 in rent. together our annual income totals 30,000.

Guest 0.10 Dollars($)

Both can qualify as co-borrower but for that both of you should have ownership rights over the house for which the mortgage will be taken.

runnergoat · Joined: 05 Mar 2007 Posts: 2 1.51 Dollars($)

you would have a better chance of success to co-borrow with a relative.

kenstampe · Posted: Mon Mar 05, 2007 12:30 pm Post subject:

runner,

I have no idea where your advice is coming from. I disagree that sonia would have a better opportunity qualifying with a family member.

sonia, you can purchase a home with another person even if that person is not your spouse. In buying a home with a non-spouse, I encourage you to also have an attorney draw up a simple agreement describing who would do what if one or the other moved out. It would be better to have it in writing ahead of time.

good luck.

SHARLEE2004 · Posted: Mon Mar 05, 2007 12:51 pm Post subject: Pooling

Yes, this is a possiblilty.

You would most likely want to get 'pre-qualified' for the loan before you start shopping for a home.

You'll need paystubs, W-2s for both to prove income. If there is child support you can report this as income if you want as well.

The title of the property could be listed as 'tenants of the entirety' the title company would take care of this for you. This would mean that God forbid something happens, the property is 50% yours and 50% hers and you would be able to 'buy out' the other with refinancing/selling and you are entitled to 50% of the proceeds.

I've done several loan programs for the scenario you mention.

colin · Posted: Mon Mar 05, 2007 1:10 pm Post subject:

I agree with Ken, there are no stipulations by lenders that a co-borrower necessarily be a relative to have better chances of getting approved for a mortgage. Unrelated persons can also take a mortgage together if they are on the title of the home.

Regarding how title is held, that can be decided between you two, for that also you need not be a family member. If both hold title as Joints Tenants with right of Survivorship then the title will automatically get transferred to the other living joint tenant.

Colin

blue · Posted: Mon Mar 05, 2007 6:10 pm Post subject:

I also cannot agree with runnergoat that anyone will have better chances of qualifying for loan if the co-borrower is a relative.

helping_user

Welcome Sonia.

It's a good decision to pool your resources together and apply for home loan.

The lender will consider both for your incomes and credit scores and trust me, if one of you have poor credit, the other having good score will help both qualify for the loan.

I would like to go by what Ken has advised you. It will be definitely a good idea to have a written contract between the two of you with the lender having a copy of it. The contract would state each of your rights when the other moves out or stops making payments.

Thanks.

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