Compare Mortgage Quotes

Guest

can you please explain what a trailing co-borrower is?

helping_user · Posted: Fri Sep 12, 2008 12:10 am Post subject: RE: trailing co-borrower

Hi wallysims,

Welcome to forums.

As per the Freddie Mac guidelines, a trailing borrower is a co-borrower occupying a property along with the primary borrower, who has now relocated to some other place. The trailing borrower/co-borrower is one who has been employed at the previous location (where the relocating borrower also resided) and wants to seek employment at the new location. Lenders verify the trailing borrower income prior to approving loans. The trailing co-borrower income is the amount of income that the former previously received at the previous location.

Usually lenders take into account 100% of the trailing borrower's income unless it doesn't exceed 33%-36% of the total income required to qualify for a mortgage.

Thanks.

jerry · Posted: Thu Sep 25, 2008 1:48 am Post subject:

Hi wallysims!

A co-borrower, who, along with the primary borrower occupies the property is a trailing borrower. Their income is also taken into account by the lenders when they are giving the loan.

Thanks,

Jerry

ckalvesmaki · Posted: Mon Sep 29, 2008 4:56 am Post subject:

The trailing spouse is treated as if he/she has an income when the move is a result of a job transfer......

Example......Husband is in the army gets transfered from CA to TX.......spouse is a nurse......it is presumed that the wife who is working will gain employment in the new area in the same line of work. Thus they are given "credit" for her income even though she doesn't actually have a job yet.

gmakerley · Posted: Wed Oct 01, 2008 7:36 am Post subject:

thanks again cedric for clarity - an uncommon commodity all too often.

elnoralittle · Posted: Wed Oct 01, 2008 10:09 am Post subject: trailing coborrower

It is not unusual for a household that consists of two wage earners to relocate to another area because one of the wage earners is transferred by his or her employer or finds another job in a new location. Sometimes these borrowers will find a home in the new location that they want to purchase before the other wage earner finds a new job. When the primary wage earner is relocated by his or her employer with a documented corporate relocation offer, some (or all) of the “anticipated” income from the job that the trailing secondary wage earner expects to obtain in the new location may be considered as acceptable stable income for both Fannie Mae and Freddie Mac. Neither FHA or VA allows for anticipated or projected income to be used as qualifying income.

A good example is a loan I just did for a couple in the military. The borrower was relocated and historically, the wife was employed as a teacher. It was during the summer months and so as a teacher she didn't work the summer, but since she had gotten a job everywhere her husband was relocated to as a teacher, we were able to use her 2 year average income.

gmakerley · Posted: Wed Oct 01, 2008 10:14 am Post subject:

now that's what i'm talking about!

elnoralittle · Posted: Wed Oct 01, 2008 10:17 am Post subject: RE: George

This is a nice forum.
I have a blog where so many people are distrustful of lenders these days.
It's nice to be able to help.

gmakerley · Posted: Wed Oct 01, 2008 10:43 am Post subject:

i agree wholeheartedly. there is still distrust, but as you can see from most of the posts on here, there's a lot of sincerity and a desire to be helpful from the lenders represented.

Guest

Has the requirements for Trailing Spouses changed in 2009? That is, my fiancee and I are hoping to relocate this year. He is self employed and I don't have a job lined up in the prospective city. He's been self employed for 3 yrs and we're pretty confident that we can qualify for a mortgage (great credit, income, savings, etc). I plan to get a job as soon as we move. I read different sites that said as a Trailing Spouse, only a percentage of my current job can be qualified. Is that true? Or must I have a job lined up to actually qualify. I worry about the 2 yr job history qualification. We're looking at Conventional or FHA loans (we're 1st time homebuyers). Please advise.

Guest

Has the requirements for Trailing Spouses changed in 2009? That is, my fiancee and I are hoping to relocate this year. He is self employed and I don't have a job lined up in the prospective city. He's been self employed for 3 yrs and we're pretty confident that we can qualify for a mortgage (great credit, income, savings, etc). I plan to get a job as soon as we move. I read different sites that said as a Trailing Spouse, only a percentage of my current job can be qualified. Is that true? Or must I have a job lined up to actually qualify. I worry about the 2 yr job history qualification. We're looking at Conventional or FHA loans (we're 1st time homebuyers). Please advise.

gmakerley · Posted: Mon May 11, 2009 8:43 am Post subject:

melly, i hope you get some favorable answers on here. i haven't had a trailing spouse situation come up in quite some time, so i haven to tell you i won't be much help to you.

as for your fiance, i trust that his self employment is transportable. by that i mean, he can do the same amount and type of business as he is currently while moving to a new location.

Guest

With ever tightening guidelines be careful. Fannie Mae just recently (June 2009) stopped allowing trailing spouse income.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

trailing co borrower