Financing in Ambler>Question Details

alley6022, Home Buyer in Horsham, PA

In PA, can a married couple only have 1 spouse put the mortgage in their name?

Asked by alley6022, Horsham, PA Mon May 21, 2012

If I buy the home, we won't need to put down 20%. If we buy together, they will make us put down 20% because he has several rental properties and look at him as an investor even though this will be our primary residence.

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Jim Simms’ answer
That’s quirky, I am not familiar with any conventional guideline that requires 20% down on an owner occupied purchase - rentals or no rentals. It could be that his rentals create a ratio issue on getting MI. If you are not on any of the mortgages on the rental properties (how did he do that?) your ploy might work if you earn enough income to qualify for the new loan. If that is the issue you will need to prove you are not on the notes on the rental property. Start getting copies, and help your loan officer get a supplement on your credit report showing that you are not liable. A credit report that does not list them under your name is not sufficient if they show up on your tax returns. Your tax returns are going to show those bad boys if you file together.

Another way is to have the title company research it for you and do a cover letter.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon May 21, 2012
Hello Alley,

you can both be on title, and that being said, both will be on the mortgage. HOWEVER the mortgage is the pledge of that property as security for the NOTE. You can ( if you chose ) be the only one on the note. I would suggest doing it this way. If the property you are buying is really a primary residence we can make that stick with a lender. If not we can switch the title, mortgage and note in your name alone. As a loan officer I try to go for the point of least resistance whilst maintaining my clients best interests in mind.

If he has several rental properties that does not exclude him form buying a primary residence.
Freddie Mac allows four financed properties and FannieMae allows up to ten. But banks have overlays on this rule but most lenders are OK if it is a primary residence.

FYI if you file joint tax returns, the lender will see that you file a schedule E for investment properties and will want to know all of that information anyway.That being said you are going to have to show that it will be your primary anyway.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Mon May 21, 2012
Thank you. He has 2 properties that were his primary residence but they are now rentals. They were conventional loans. The other house he has is paid off and that is where we live now. We want to buy this house but we need to do a a full 203K loan. It needs a lot of works so that's why we don't want to put down 20%. If he goes on the mortgage with me, can we get away with just putting down 3.5%? We plan on both of us being on the deed. We have our offer pending on the short sale waiting for bank approval. We weren't sure if we should wait to get married after we get the house because of these questions.
Flag Mon May 21, 2012
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