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Xpatriot
333 Posts |
 Posted - 05/23/2008 : 4:20:18 PM
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mom and son are both on the mortgage and the title for a duplex. son lived in 1 unit mom in the other. Son has been transferred to china for the Olympics 7 months ago, mother resides in the home and handles their other rental properties. FNMA won’t take the non-occupying borrower, Freddie Mac won’t take the duplex, how about FHA? any ideas would be greatly appreciated
Problems:
Son is in china –temporarily, not sure how long
Property is a Duplex
Compensating Factors:
700 ficos
Low dti 28%
Low ltv 35%
Ton of reserves
Loan is adjusting
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Scrooge McDuck
8057 Posts |
Posted - 05/23/2008 : 4:23:01 PM
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| freddie wont do duplexs? |
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Xpatriot
333 Posts |
Posted - 05/23/2008 : 4:28:48 PM
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quote:
Originally posted by Scrooge McDuck
freddie wont do duplexs?
according to the guidlines for non-occupying borrowers. |
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nowbroker
1235 Posts |
Posted - 05/23/2008 : 4:47:08 PM
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FHA should work for you.
You can use an non occupant co borrower on an FHA loan if it is a duplex up to a 4 plex if the LTV is under 75%, but not higher.
There are additional rules on 3-4 units, but do not apply on your deal. |
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Xpatriot
333 Posts |
Posted - 05/23/2008 : 4:50:47 PM
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quote:
Originally posted by nowbroker
FHA should work for you.
You can use an non occupant co borrower on an FHA loan if it is a duplex up to a 4 plex if the LTV is under 75%, but not higher.
There are additional rules on 3-4 units, but do not apply on your deal.
they are wanting to verify that his employment is temporary, he is on a two year contract. also, there is some difficulty with the actual verification for his emplyment, as it is in China. |
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GSE_
428 Posts |
Posted - 05/23/2008 : 5:19:04 PM
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| He is not there representing (Working for) a U.S. Company? |
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Xpatriot
333 Posts |
Posted - 05/23/2008 : 5:27:53 PM
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quote:
Originally posted by GSE_
He is not there representing (Working for) a U.S. Company?
he works for HSBC, but his ranch in Chia is seperate from that of the US. his most recentpaystubs are in Yuan. |
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rtrefflich
2662 Posts |
Posted - 05/23/2008 : 5:30:21 PM
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| Does the son have any ties showing that he still lives there and his permanent home is the duplex? I have done transactions with Military and contractors who work oversees, on ships, and other wierd places, their rental and living expenses outside of the home are paid by the company and it has been no problem. If the house is rented out then it may be a problem, but if his stuff is still there and it is his house I would approach it that way. |
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ppulatie
2238 Posts |
Posted - 05/23/2008 : 9:10:51 PM
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Curve ball nicked the corner for a strike.
Couldn't help it..... |
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RGK2394
1157 Posts |
Posted - 05/23/2008 : 9:35:38 PM
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Beauty of FHA is with the correctly worded LOX this should work- have the mom used as an occupying co borrower and explain the situation, assuming it IS the primary's primary residence still- and play it up that he's essentially representing his country, has a contract, will be returning to "X" job when back, etc etc. I think with the right lender this is FHA all day. OR, worst case scenario, have the guy sell it to the mom up to 6% seller concession with FHA DPA no money out of her pocket and business as usual assuming she can carry the dti's on her own.
Wait, sorry, just noticed both mom and son currently on title and note, so sale with DPA out from what I know but refi with a money LOX would still fly- call your a/e's and have 'em talk to their u/w's- someone will take this. |
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slants
4261 Posts |
Posted - 05/23/2008 : 11:17:09 PM
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| Can't remember the lender, but I recall one lender's AUS actually had a selection in their drop down for "works abroad". My brother-in-law who is an American working for an Australian company in China (not on temporary basis) just closed a FD R/T refi on his NOO home in Hawaii with CW a few months ago (his loan was with CW at the time). Not that difficult to calculate the exchange rate from Yuan to dollars and I'm sure the employer would be able and willing to provide a VOE or a letter as verification. Just need to find a lender who will be reasonable. Good luck. |
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mortgagegirl1010
189 Posts |
Posted - 05/24/2008 : 05:25:11 AM
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These are my thoughts:
I am sure he got a transfer letter and a copy of the contract stating how long and the terms of his assignment ( I would hope he would not go to China without one)
i am sure there are other English speaking people over there in H/R that can fill out a written VOE.
You should not have to worry about faxing to China because I am sure they can accept it as an email attachment.
I would call the company and see if the directory is in English and see if his name is on the employee menu. That proves he works there too. They prob have a toll free number
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slants
4261 Posts |
Posted - 05/24/2008 : 08:36:51 AM
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quote:
Originally posted by Xpatriot
mom and son are both on the mortgage and the title for a duplex. son lived in 1 unit mom in the other. Son has been transferred to china for the Olympics 7 months ago, mother resides in the home and handles their other rental properties. FNMA won’t take the non-occupying borrower, Freddie Mac won’t take the duplex, how about FHA? any ideas would be greatly appreciated
Problems:
Son is in china –temporarily, not sure how long
Property is a Duplex
Compensating Factors:
700 ficos
Low dti 28%
Low ltv 35%
Ton of reserves
Loan is adjusting
If I were processing this loan, I would address the occupancy so that the "non-occupying" issue never comes up. He is an American working abroad taking a 2nd home overseas as a necessity for a temporary job assignment. The duplex is and remains his primary residence. I'm sure he will travel back home for vacations and holidays even during his 2 years job transfer. For me, the issue of non-occupying would not be a question. I would document it with an LOE and utilities in his name, unless it is now truly a rental? |
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