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Bank loan and owner financing

My husband and I have good credit and great income.  We stumbled upon a home that we would really like to purchase.  However, due to my stated income, we can only apply for a home loan in his name.  Our goal would be to somehow purchase this home, and refinance in 2 years after I have W2 proof of income.  He has been approved for about 2/3 of the home price.  My question is this: Is there some way to buy the home with what he was approved for, and ask the owner to carry the rest for the next 2 years?   How would we go about this? 
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April 12 2012 - Erie
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Answers (1)

Probably not.  The owner would more than likely need to either carry the whole note or the bank would need to carry the whole note.  It all comes down to lien holder position.  The bank will want to be first.

If the owner was willing to carry 1/3 the bank might take 1st position and carry the 2/3, but you would need to talk to a banker.

Also, if the owner currently has a mortgage on the property that mortgage would have to be completely paid off in order for your new lender to take 1st lien position.  If there is enough equity in the home it may work, but in this market a lot of people have very little equity.

On a side note....Why is your income stated?  Are you self employeed?  Part-time?  Consultant?  Typically you need 2 years of tax returns in order to have your income count in the transaction.

One other option would be to look at what's preventing your husband from fianancing the entire amount.  Obviously his pay or pay - debts is not enough to sustain the full mortgage.  Does your husband have debt in his name that is being counted against his approval?  If it's a front ratio issue there is not much you can do, but if it's a back ratio issue you may be able to get some of the debt out of his name and into your name;  thus increasing his borrowing power.

I hope that helps a little.

Best of luck!
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April 12 2012
 
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Bank loan and owner financing
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