| Author |
Previous Topic | Next Topic |
|
lefmortgage
9 Posts |
 Posted - 07/22/2008 : 4:30:18 PM
|
Difficult loan in difficult times.
started with two happy med school students, who (let's call her sarah) (lets him him jose) are engaged. Jose is on an F1 Visa...which we just found out. His "funds" from another country that they put down on application have finally been seasoned in the country in Sarah's bank account. Jose is working at school, making 1500 ... when paired with Sarah...they still only make 1500...but Sarah's Dad (non occupying co-borrower) is wealthy, 1 million in his managed money accounts, but isn't making a ton 65K in his part time job..and currently has a home himself.
Dad 805 credit score
Sarah 755 credit score - 40K in bank account, seasoned, for 10% down payment
Jose 699 credit score
With all three combined, DTI is 54%
315 purchase price.
But it just got turned down due to Jose having a F1 visa. CRAP
Any ideas?
Locked loan at 6.5 (making 1.38) on a 30 year fix... of course getting MI on the loan. This is a low rise condo in Chicago, IL.
Any ideas?
Thanks |
|
liverichly
3936 Posts |
Posted - 07/22/2008 : 4:38:24 PM
|
For anyone who is reading, F1 is an academic student Visa FYI. Definition is:
Foreign academic student studying an academic course at a school in the United States; must return to home in foreign country when studies are complete. May only work part-time on campus when school is in session and in certain situations.
|
|
|
lefmortgage
9 Posts |
Posted - 07/22/2008 : 4:40:37 PM
|
| You are correct on the def of a F1 Visa - And its currently getting turned down due to that F1 status. |
|
|
slants
4274 Posts |
Posted - 07/22/2008 : 4:40:42 PM
|
quote:
Originally posted by lefmortgage
Difficult loan in difficult times.
started with two happy med school students, who (let's call her sarah) (lets him him jose) are engaged. Jose is on an F1 Visa...which we just found out. His "funds" from another country that they put down on application have finally been seasoned in the country in Sarah's bank account. Jose is working at school, making 1500 ... when paired with Sarah...they still only make 1500...but Sarah's Dad (non occupying co-borrower) is wealthy, 1 million in his managed money accounts, but isn't making a ton 65K in his part time job..and currently has a home himself.
Dad 805 credit score
Sarah 755 credit score - 40K in bank account, seasoned, for 10% down payment
Jose 699 credit score
With all three combined, DTI is 54%
315 purchase price.
But it just got turned down due to Jose having a F1 visa. CRAP
Any ideas?
Locked loan at 6.5 (making 1.38) on a 30 year fix... of course getting MI on the loan. This is a low rise condo in Chicago, IL.
Any ideas?
Thanks
Under a non-immigrant student visa, looks like he is only authorized to work for 12 months under practical job training. So Sarah does not work at all?
F-1 students are generally not permitted to work in the US without prior authorization from Citizenship & Immigration Services (USCIS). However, the USCIS may grant work authorization for Curricular Practical Training (CPT) and Optional Practical Training (OPT) and under certain extreme circumstances. Students are permitted to work for a total of 12 months towards practical training (eg. internship), which can be distributed between Curricular Practical Training (CPT) and Optional Practical Training (OPT), provided the student maintains a good academic standing. The student's academic and international office adviser must certify that the work is necessary towards the completion of his or her degree. An interim order was passed recently, allowing students in STEM (Science, Technology, Engineering and Mathematics) to undergo OPT for 29 months. |
|
|
lefmortgage
9 Posts |
Posted - 07/22/2008 : 4:45:05 PM
|
| Correct, Sarah does not work at All. Jose plans on either getting sponsored by a company, or just continue going to school until the right job (with sponsorship) allows him to get out of his F1 status. |
|
|
slants
4274 Posts |
Posted - 07/23/2008 : 12:53:38 AM
|
I came across this tonight quite by accident. It looks like Sarah does not need to have any income for dad to buy her a property as a non-occupant co-signer (hopefully dad does not have investment properties - I hear they are leery of investors buying properties as OO). Just take Jose off the loan and Sarah can be buyer with dad as co-signer:
http://www.brokeroutpost.com/reference/43683.htm
FHA "Kiddie Condo" program.
This program by FHA allows full time students the opportunity to purchase a home with the assistance of their parents credit and down payment even if the student has not established any credit.
With an FHA Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.
This type of mortgage allows a person to co-borrow with a blood relative (eg. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets.
Kiddie Condos have a very low down payment required of 3% and can be counted as an owner occupied property instead of a second or vacation home which gives you better rates and certain tax advantages.
This is a great way for a parent to obtain a "return on investment" from having a child in College. One can purchase a townhome, etc. with their child near campus. Instead of paying rent on campus housing, an investment is being made. |
|
|
slants
4274 Posts |
Posted - 07/23/2008 : 12:59:59 AM
|
| I just noticed DTI will be too high without Jose's income. Perhaps dad will pitch in another 5-10% down payment to bring down the DTI? I would take Jose off and keep running DU with increased down payment until loan amount is low enough to get an accept. Down payment does not need to be seasoned for FHA. Good luck. |
|
|
jtm7332
499 Posts |
Posted - 07/23/2008 : 08:20:33 AM
|
| Not many lenders I know of are still doing the Kiddie Condo program. |
|
|
lefmortgage
9 Posts |
Posted - 07/23/2008 : 08:32:24 AM
|
| Slants... I appriciate the info- Kiddie Condo..never heard of it. My inexperience with FHA is my own fault as I know very little of th FHA side except for the excitement some have in it. Our firm still hasn't added the FHA feature yet, we just refer out FHA. |
|
|
slants
4274 Posts |
Posted - 07/23/2008 : 09:08:38 AM
|
quote:
Originally posted by lefmortgage
Slants... I appriciate the info- Kiddie Condo..never heard of it. My inexperience with FHA is my own fault as I know very little of th FHA side except for the excitement some have in it. Our firm still hasn't added the FHA feature yet, we just refer out FHA.
As far as I know FHA is the only program where a non-occupant co-signer may help income qualify a primary borrower. Agency guidelines require that the occupant borrower debt ratio by themselves - cannot use income from so-signer to qualify. I think FHA w/ non-occupant borrower with higher down payment to bring down DTI is the only long shot option here. Sorry. |
|
|
liverichly
3936 Posts |
Posted - 07/23/2008 : 09:13:14 AM
|
| I've found that most FHA lenders are OK with the non-occupant co-borrower/kiddie condo feature that FHA offers. I know for a fact that TB&W, Nations Direct, SunTrust, American Home Partners, and Flagstar are all OK with it because I had a similar scenario with FHA before (borrowers cousin, who wasn't going to live in the home, was actually going on the loan to help qualify). |
|
|
lefmortgage
9 Posts |
Posted - 07/23/2008 : 09:24:06 AM
|
| thanks everyone - just wanted to share -- Freddie WAS ok with it too... Citi suddenly changed to say that they're not on the conforming side. |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
