- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (7)
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
You have a few things to consider: The Lender will view both the Borrower and Co-Borrower's Income vs. their minimum monthly payments. Also, you will need to make sure you have at least 25% equity in your current residence; otherwise, they will apply the entire mortgage, property tax, MI if applicable and hazard insurance toward your debt-to-income ratios while qualifying you for the new subject property. If you have the 25% equity, then you can have the appraiser provide a market rent report, which the Lender will apply 75% occupancy. This may not be a guarantee with all lenders, as you don't have at least a 2 year history of managing an investment property, so they may still apply the full payment against your income while qualifying for a loan. You won't be able to apply your $400/month secondary job, as they will want a 2 year history reporting it (assuming it's a cash business). If not a cash business, then the Underwriter will question why it wasn't reported. So, best left off. Hope this helps. Best of luck.
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
It would be best to speak to a lender and find out what you can qualify for on your own. The second job can only be considered as a compensating factor because you have not been in the job for at least 2 years. You may find that with your find credit score and no debt you may qualify on your own. I'd be happy to assist you.
- Sean Wait, "SeanWait"
- Contributions:12
Yes the debt ratio of the co-signer is used, the second job won't be able to be used unless you can document that you have had it for at least two years, so even if you claim it this year you wouldn't be able to use it.
Plus if he is a co-signer and is keeping his current home as an investment property there will be other things you will need to meet such as increased amount of reserves and/or he must have 30% equity in that home.
Also one of the things you said is about not having any debt, do you have sufficient trade lines?
You will want to meet with a Mortgage Professional if you haven't already to nail down the specifics.
Plus if he is a co-signer and is keeping his current home as an investment property there will be other things you will need to meet such as increased amount of reserves and/or he must have 30% equity in that home.
Also one of the things you said is about not having any debt, do you have sufficient trade lines?
You will want to meet with a Mortgage Professional if you haven't already to nail down the specifics.
- Thomas Hall, "Tennessee Loans"
- Contributions:381
Nobody has asked but what First Time Credits?. Unless you are military and we're deployed this past/previous year the Federal First Time home buyer tax credit has expired.
What is your monthly income? The only way your fiance being on the loan will impact the rate is if his credit score is less than yours.
- ujshine01
- Contributions:2
My monthly is about $5.5k. He does not have 30% equity in his current home, thats why we're not selling his house. I believe his mother will move into his current home. Would that still be considered an investment property or a second home? I think with my income alone, I barely meet the ratio threshold for FHA.
As far as sufficient trade lines, my oldest credit card is about 7 years old. Is that considered sufficient?
His credit is way better than mine. 750-800.
Is there any way to get around these issues? Based on both our incomes combined, we can easily afford a mortgage of this size but putting a mortgage under my name alone may be tricky.
Any additional advice is greatly appreciated. Thanks!
As far as sufficient trade lines, my oldest credit card is about 7 years old. Is that considered sufficient?
His credit is way better than mine. 750-800.
Is there any way to get around these issues? Based on both our incomes combined, we can easily afford a mortgage of this size but putting a mortgage under my name alone may be tricky.
Any additional advice is greatly appreciated. Thanks!
- Steven G. Hinton
- Contributions:98
If your fiance's property has equity why not sell? If you can qualify on your own do it. It doesn't really matter that you barely qualify, what matters is you qualify.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
If you can't qualify on your own, your only option that comes to mind is If his current home is too small for two people, you still can probably make it work. Then save and get two years of second job income documented and you can try again.
Happy funding, Rudi
Happy funding, Rudi
Does income ratio appy for co signers too?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.