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 viewisle
Joined: 29 May 2011
Posts: 1
1.46 Dollars($)
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smithsussane
Joined: 18 Sep 2008
Posts: 10439
Location: Alaska
985.83 Dollars($)
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Posted: Tue May 31, 2011 9:01 am Post subject:
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Your mortgage broker has apparently never heard of FHA lending. Certainly, your father in law would be a viable cosigner for you under their guidelines (assuming all favorable data).
I'd have a hard time, as a lender, accepting the gift from him to your wife as income. If she's claiming it as income on your tax returns, then that legitimizes it, but otherwise, it's purely a gift and therefore not really income from a lending standpoint. Of course, if he's willing and able to cosign, per lending guidelines, that would pretty much eliminate the actual need to have those dollars counted.
Unfortunately, having a "stable income" doesn't mean much if that income is low; but a cosigner (again, think FHA) can provide the additional qualifying dollars needed.
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George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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chrisgummerson
Community Expert
Joined: 29 Apr 2010
Posts: 704
Location: La Palma, CA
9.98 Dollars($)
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Posted: Tue May 31, 2011 11:29 am Post subject:
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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 $1,425 Principle, interest, tax and insurance/month... Assuming you have no other car payment or credit card payments. Likewise, if you cannot prove the gift, your 25k income could get you 118k loan. (again, that you do not have other debts to pay). Long story short, if you are buying a reasonably priced home, and putting money down, you might not need the co signer. But like the others have said, you CAN use a co signer. Good Luck!
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Chris Gummerson
Bay Valley Mortgage Group
bayvalleymortgage.com
714-367-5125
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jveenstra
Community Expert
Joined: 10 Nov 2008
Posts: 1310
Location: River Edge, New Jersey
274.62 Dollars($)
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Posted: Tue May 31, 2011 1:42 pm Post subject: Purchase
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When your broker says that no one allows co-signers anymore, he means no one that he knows. There are plenty of lenders in the world that your broker has never and will never work with. Some of them allow co-signers. It is true, not as many as before, but some still do.
One or both of you is permitted to start regular monthly withdrawals from retirement accounts. Fiugure out how much you need as monthly inocme to buy whatever you want to buy and start monthly withdrawal from a retirement plan. Some lenders want to see that you have received that for one to three months before you close, so, plan ahead.
Freddie Mac just announced a new way to use assets as income. If you have access to retirement account, even if you do not take monthly withdrawals, you can use 70% of the balance and divide by 360 and use that figure as monthly income to qualify for a mortgage. Starts August 1, 2011 if not started already.
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John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
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tomburris
Community Expert
Joined: 03 Oct 2007
Posts: 135
Location: North Dallas
19.12 Dollars($)
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