Posted on: 17th Dec, 2008 09:56 am
I went to contract on new construction for a home Sept. 2007. The cost is $664,000.00. I placed a deposit of $70,000.00, and paid for all my extras upfront (a total of $100,000.00). My current credit score is 740. At closing I will be paying a total of $200,000.00 cash, and the taking a mortgage out for the remainder. My contract stated the house would be completed in July 2008. It was, for reasons unknown to me, the builder dragged his heels in completing my home. Up until August 2008, I qualified for a stated income loan (I am an attorney who has been an independent contractor since 2006, so I don't show all my income). In the latter part of August 2008, I was told I may not qualify for a mortgage because they did away with income stated loans. My dad agreed to co-sign (He has significant liquid assets and owns a home with no mortgage). The lender is telling me in addition to placing a lien on my new home, my father has to agree to have a lien placed on his home and/or liquid assets. HERE IS MY QUESTION: IS A A LEGAL REQUIREMENT THAT MY DAD AGREE TO HAVE A LIEN PLACED ON HIS PRIVATE HOME AND/OR ASSETS, EVEN THOUGH HIS AGREEMENT TO CO-SIGN THE LOAN ACCOMPLISHES THE SAME THING, OR IS THIS THE LENDER'S REQUIREMENT. PLEASE ADVISE. THANK YOU FOR YOUR ASSISTANCE IN THIS MATTER. DJS :roll:
Sounds like a lender erquirement. In what state is the property. There or few, if any, national stated income programs, but, there are local lender programs in some states. In what County is the property? FHA loans have limts by county and when FHA loan has a co-signer, they do not put a lien on the co-sigener's property. Lokks like your loan is to be about $394,000?
Hi DJS,
I don't think it's a legal requirement to place a lien on the co-signer's property. I agree with JohatAFC that it is the lender's requirement to place a lien on the co-signer's property.
Thanks
I don't think it's a legal requirement to place a lien on the co-signer's property. I agree with JohatAFC that it is the lender's requirement to place a lien on the co-signer's property.
Thanks
Find a different lender
This is not right, your loan amount is in conforming land and depending on the state you are in might even be FHA material. So once the house is complete apply with your father as a cosigner with a normal lender.
There might be pieces missing in your story for me to make sense of it but your father should not be required to do anything on top of cosigning if the loan is accepted. Are you trying to finance through the builder?
Or is it a small local credit union?
How much income do you show?
Do you have lots of debts?
This is not right, your loan amount is in conforming land and depending on the state you are in might even be FHA material. So once the house is complete apply with your father as a cosigner with a normal lender.
There might be pieces missing in your story for me to make sense of it but your father should not be required to do anything on top of cosigning if the loan is accepted. Are you trying to finance through the builder?
Or is it a small local credit union?
How much income do you show?
Do you have lots of debts?
I am loking for an FHA Firs-Time Homebuyer loan of about $100k +/- to buy a short-sale single family house from my landlord-lord/rooomate. He became ill, was let go from his job for being out sick and not covered by FMLA (< than a year employ), had to file BK7. Anyway - I am partially disabled so I get SSDI of $834, have some self-employ income and part-time income (limited due to health) but am well able to prove (some stated income, some standard docs) that I can afford the mortgage on a loan of that amount in order to buy the house from my landlord and keep us in the home. I am having trouble finding a lender that "understands" my odd circumstances (3 different kinds of income) and am being discouraged by the major and mid-size banks. Any advice out there for me?
Hi
I've answered your query at http://www.mortgagefit.com/homeloan/fha-statedincome.html#96385.
Don't hesitate to ask further queries, if you have any.
I've answered your query at http://www.mortgagefit.com/homeloan/fha-statedincome.html#96385.
Don't hesitate to ask further queries, if you have any.
i no more want to be a member
that's fine, guest...most every community organization or fraternal organization or even websites are happy to allow people to renounce their membership.
can you have co signer that live in another state
Hi crystal,
It will be the lender's discretion whether or not he will let a person living in some other state cosign for your loan.
Thanks,
Jerry
It will be the lender's discretion whether or not he will let a person living in some other state cosign for your loan.
Thanks,
Jerry
to my understanding its not the underwriters decision about whether or not to allow the cosignor on a single family FHA, that is acceptable with guidelines and therefore not an underwriter call. However it is the underwriters decision as to the credit worthiness of the cosignor.