Financing in Brandon>Question Details

silviarpaulo, Home Buyer in Brandon, FL

LO took me off loan app. fiance is on - but to me does not qulify for FHA ? Help please. Makes no sense to me.

Asked by silviarpaulo, Brandon, FL Wed Apr 17, 2013

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12
Silvia,

You should find an actual lender in Florida to assist you. Real estate agents are not going to be able to give you accurate information on qualifying for a mortgage. It appears Alma gave you a referral for one, you should contact that person.

Good luck.
1 vote Thank Flag Link Thu Apr 18, 2013
Please ignore TGIF,

FHA only requires that one person occupy.

Here is the guideline exactly:

"4155.1 4.B.2.b FHA Requirement for Establishing Owner Occupancy
At least one borrower must occupy the property and sign the security
instrument and the mortgage note in order for the property to be considered
owner-occupied.
FHA security instruments require a borrower to establish bona fide occupancy
in a home as the borrower’s principal residence within 60 days of signing the
security instrument, with continued occupancy for at least one year."

Either your loan officer doesn't know what they are doing or there is another reason you cannot be on the loan application. It certainly has nothing to do with the need for you to occupy if your fiancé is planning on occupying and is on the note and title.
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1 vote Thank Flag Link Wed Apr 17, 2013
You need to speak to your loan officer. We don't know details of your situation. It's very common for a lender to have one person not be on the loan because they can't qualify. Both parties need to qualify if you both are going to be on the loan. However, you BOTH can be on title to the house. Again, talk to your LO and have them give you a detailed explanation.
1 vote Thank Flag Link Wed Apr 17, 2013
Thank you Alma .. Question -- are the car installment loans considered still in the DTI if there is less than 10 months left to pay it off?
0 votes Thank Flag Link Thu Apr 18, 2013
Not sure but your lender should be able to answer that question or Gina Harris with iBeria Bank Mortgage, call or email her. see link:

Office: 813-933-6611 Ext 204 Cell: 813-244-5685
email: gina.harris@iberiabankmortgage.com
Flag Thu Apr 18, 2013
Okay so if Gregorio Denny is correct, contact you lender immediately to see if your status as a "Fiance" will allow you to be a non-occupant co-borrower and only put down 3.5% if that is what you need.

Let us know how it works out.

Also just so you know we have State of Florida Bond money that may be able to get you up to $7,500 if you qualify. You MUST work with an APPROVED lender so I would go here and select one of these lenders:

http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWiz…

I can highly recommend Gina Harris with iBeriaBank Mortgage, you can apply directly on her website:

https://gharris-iberiabank2lo.mortgagewebcenter.com/ApplyNow…

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
0 votes Thank Flag Link Thu Apr 18, 2013
Unfortunately - I have had this issue before with a loan. While FHA is a great loan product and has some broad guidelines - each lender has their own guidelines that they place on top of FHA's. Now since you don't technically qualify as a Non Occ Borrower for this lender - you may want to consider a family member of your fiance to help qualify for the loan if you think they need help. You may want to check with another mortgage lender to see if they have more lenient regulations for non Occ Borrowers and FHA.
0 votes Thank Flag Link Thu Apr 18, 2013
Alma says:
"I'm not a mortgage lender but a non-owner occupant co-borrower must be related by blood or marriage. "
------

Trulia is irritating because it's filled with agents that start their posts with this very phrase, then proceed to provide incorrect and potentially damaging information. I don't understand why they do not stop with I am not a lender and then move on.

Actual FHA guidelines are as follows for who can be a NOCB:

"• borrowers related by blood, marriage, or law, such as
− spouses
− parents-children
− siblings
− stepchildren
− aunts-uncles, and
− nieces-nephews, or
• unrelated individuals who can document evidence of a longstanding,
substantial family-type relationship not arising out of the loan transaction."

A fiancé qualifies for the latter.


I still stand by my opinion that agents that give incorrect information outside of their scope that damages a client shoud have claims filed against their E&O. Only then will they learn to stop trying to be what they are not and stick to what they know.
0 votes Thank Flag Link Thu Apr 18, 2013
Thank you all that is what I thought and I live in another state so that was an issue with the UW.
0 votes Thank Flag Link Thu Apr 18, 2013
I'm not a mortgage lender but a non-owner occupant co-borrower must be related by blood or marriage. Found this and it sounds like unless you marry your fiance you will have to put 25% down:

GENERAL GUIDELINES:
- Non occupying co borrower must have sufficient credit score and income to qualify
(Key Note: Lenders still go by the lesser of applying applicants' credit score)
- Non occupying co borrower IS NOT required to live in the same state of the purchase
- Non occupying co borrower IS NOT required to be a relative of the borrower
- Non occupying co borrower can be refinanced off loan in 12 months if primary then as sufficient income to then qualify for the mortgage on his/her own.
- Until then, primary borrower has to still earn enough to at least make full mortgage payment on their own

In regards to a related and non related non occupying co borrower the following guidelines apply:

RELATED NON OCCUPYING CO-BORROWER
Definition: A co-borrower is that is related to borrower through blood or marriage (i.e. spouses, parents, grand parents, children, siblings, aunts, uncles, cousins, nieces and nephews)
-Up to 96.5% LTV financing available
- Borrower needs a minimum 3.5% down.
- Outside of this, all standard guidelines for a FHA approval still applies

NON RELATED NON OCCUPYING CO-BORROWER
Definitionn: A co borrower that is not related by either blood or marriage
- Up to 75% LTV financing available
- Borrower needs a minimum of 25% down
- Outside of this, all standard guidelines for a FHA approval still applies

Hope this helps!

All the best,
Alma
Alma Rose Kee, PA
http://www.SoldOnTampa.com
Future Home Realty
0 votes Thank Flag Link Thu Apr 18, 2013
FHA requires you occupy the home. If you live in another state you can't occupy the home. How does that not make sense?
0 votes Thank Flag Link Wed Apr 17, 2013
I think you need to get a second opinion. Also try a credit union if FHA cannot allow you to buy because your work is so far away.
0 votes Thank Flag Link Wed Apr 17, 2013
I did , she said that since I live in another state and not an ocupant of the property as my primary that the UW isnt happy about that. I have a work commitment i cant get out of, hence why i am not there but commutting. with that i am taken off the loan and he is on his own. i would be on the title with him but he is just soley on the loan.
0 votes Thank Flag Link Wed Apr 17, 2013
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