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pdm
306 Posts |
 Posted - 05/28/2008 : 07:14:34 AM
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Got a deal , the husband doesnt(or maybee the wife doesnt want hime on her house) want to be on the deed, but is needed to qualify for income. My primary lender said no.
Anyone?
full doc 800 score 49 ltv |
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homer5
364 Posts |
Posted - 05/28/2008 : 07:26:23 AM
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| You can't borrow without collateral. If the co-borrower is not on the deed, he/she has no collateral. |
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slants
4309 Posts |
Posted - 05/28/2008 : 08:17:04 AM
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| Nope, can sign the deed and not the note, but can't be on the note and not the security instrument. FHA does not require non-occupant cosigners to sign the deed, but I doubt hubby wants to move out. |
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nowbroker
1491 Posts |
Posted - 05/28/2008 : 08:35:49 AM
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This is a simple co-signer transaction, both FHA and FNMA loans will accept cosigners (on the note but not on title)
Some lenders have internal requirements that they accept co-borrowers only, but that is NOT an agency guideline, call around for a different lender. |
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tomsammon
44 Posts |
Posted - 05/28/2008 : 08:43:20 AM
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| The co-signer signs as a guarantor. On the note, but not on title. |
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slants
4309 Posts |
Posted - 05/28/2008 : 08:45:38 AM
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| Good luck using a live-in spouse as a co-signer and not as a co-borrower. I'd love to know which lender will underwrite it that way. |
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nowbroker
1491 Posts |
Posted - 05/28/2008 : 08:57:37 AM
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quote:
Good luck using a live-in spouse as a co-signer and not as a co-borrower. I'd love to know which lender will underwrite it that way.
Not that uncommon, usually a situation where the couple was married before, and the husband (or wife) owned the home prior to the 2nd marriage. The owner of the home wants the house to go to their kids, and not the new spouse, so they want to retain the sole holder of the title . Also have had situations where one spouse does not want to be on title for fear of old business partner, ex wife, etc. could cloud the title with a potential debt.
FNMA guidelines actually state that if it is over 90%LTV, they REQUIRE the co-signer to live in the house:
FNMA section VI 101.03
When a guarantor’s or co-signer’s income is used for qualifying purposes, he or she must occupy the property only if the mortgage is a first mortgage that has a loan-to-value ratio over 90 percent. If the mortgage is a first mortgage that has a loan-to-value ratio of 90 percent or less or a second mortgage, the guarantor’s or co-signer’s income may be used for qualifying purposes even though he or she does not occupy the property.
FHA guidelines also have the same rule, on a 95% cash out refi they will allow a cosigner, but ONLY if they live in the property. |
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slants
4309 Posts |
Posted - 05/28/2008 : 09:00:27 AM
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| Good to know. Never seen that before, but I don't recall any lenders who do not require a co-signing spouse on title. |
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EMScommercial
5141 Posts |
Posted - 05/28/2008 : 09:40:44 AM
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| not doable the way the borrower wants to do it.... |
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