Home arrow Mortgage Forums arrow Forums: Learn from other's experiences arrow

Pooling resources

Author Message
Icon Mini Profile soniaholder





Joined: 05 Mar 2007

Posts: 1

1.39 Dollars($)
Post Posted: Mon Mar 05, 2007 11:23 am    Post subject: Pooling resources
Like 0
Dislike 0

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.
joan433

Guest







Post Posted: Mon Mar 05, 2007 11:32 am    Post subject:
Like 0
Dislike 0

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.
Icon Mini Profile runnergoat





Joined: 05 Mar 2007

Posts: 2

1.51 Dollars($)
Post Posted: Mon Mar 05, 2007 11:36 am    Post subject:
Like 0
Dislike 0

you would have a better chance of success to co-borrow with a relative.
Icon Mini Profile kenstampe
kenstampe
Moderator

best lender badge

Joined: 22 Jan 2007

Posts: 145
Location: Dallas, TX
50.64 Dollars($)
Post Posted: Mon Mar 05, 2007 12:30 pm    Post subject:
Like 0
Dislike 0

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.

_________________
Creating brand identity, awareness and development for real estate and financial professionals.
Icon Mini Profile sitalotbeach





Joined: 03 Nov 2006

Posts: 48

23.63 Dollars($)
Post Posted: Mon Mar 05, 2007 12:51 pm    Post subject: Pooling
Like 0
Dislike 0

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.
Icon Mini Profile colin
colin
Moderator



Joined: 30 Jun 2006

Posts: 582
Location: Waltham, Massachusetts
112.65 Dollars($)
Post Posted: Mon Mar 05, 2007 1:10 pm    Post subject:
Like 0
Dislike 0

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
Icon Mini Profile blue
blue




Joined: 21 Oct 2005

Posts: 1131
Location: MARYLAND
138.04 Dollars($)
Post Posted: Mon Mar 05, 2007 6:10 pm    Post subject:
Like 0
Dislike 0

I also cannot agree with runnergoat that anyone will have better chances of qualifying for loan if the co-borrower is a relative.
_________________
Lets help each other. Try my blog
Icon Mini Profile helping_user
helping_user




Joined: 31 Mar 2006

Posts: 806
Location: Hawaii
158.49 Dollars($)
Post Posted: Mon Mar 05, 2007 10:21 pm    Post subject: RE: non-spouse can qualify for home loan
Like 0
Dislike 0

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.
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.240 seconds.