Financing in Boca Raton>Question Details

thinkofaname…, Home Buyer in Boca Raton, FL

Mortgage Question

Asked by thinkofanamefast, Boca Raton, FL Wed May 30, 2012

Found a condo In Boca to buy, approx. 240k. I have good net worth but no earned income. They only use 1-2% on assets as income for qualification (right?) so I cant qualify for a 80% mort. My dad has very good net worth and would be willing to co-sign. (He lives mortgage free now in condo owned in trust in my mom's name,) I dont want to claim him as resident of new unit since "unlikely" he would move in.

1. Does a cosigner help get higher mortg under most programs?
2. Both of us have 750 plus credit, but will this increase int. rate to me, vs if he was intending to live there and be full co-owner?
3. How long do morts. take now...I told them I dont need mort. contingency (cause in pinch I could close all cash but DONT WANT TO) so my lawyer said if I miss deadline I could lose down 30 day grace like if I had mort contingency.
4. I hear cash-out morts are higher rates (ie close all cash and then get mort) true?
5. 10% down=higher int vs. 20% ignoring pmi? Thanks

Help the community by answering this question:


Elizabeth Alicea’s answer
Here's a response from our inhouse Wells Fargo mortgage consultant:

1.You still have to have income to qualify. The debt to income ratio is unavoidable with Wells Fargo. Not sure about other lenders. You can be a millionaire, but need income on tax returns to qualify.

2. The 1-2% of assets, I believe he is referring to “Asset Dissipation” method of calculating income. This is where they look at total assets and amortize them for 30 years to see if qualify. The borrower would have to be 62.5 years old to use this method.

3. If his father wishes to cosign, then maybe we can use his income and qualify. Cosigner does help.

4. Primary Residence and Second home rates are usually the same. The down payment can be different if it’s a condo.

5. Cash out rates are slightly higher than purchase rates

6. Rate the same for 10% or 20% typically. Not on Condos.

if you'd like to speak with him directly, please feel free to contact him at 561-789-4445 or contact me at 561-436-0278.

Liz Alicea, Realtor, CDPE, CIAS
The Keyes Company Realtors
0 votes Thank Flag Link Thu May 31, 2012
First off, you must have 2 year history of earned income ( or a combination of 2 years of employment and college in the field you currently employed in) to be on the mortgage. If you don't, there no means by which to show your ability to make the mortgage payments. Therefore, you either have to buy the home outright or have someone else (like your father) qualify for the mortgage on his own. If he does, and unless he willing to initially/possibly occupy the home himself, he will more than likely have to do it as a investment property and put down 25%.
0 votes Thank Flag Link Wed May 30, 2012
It's an question that only a mortgage broker could answer. In my company an assigned broker is there to help you with all your questions and assist you in the required steps for approval. If you provide me your information, I could forward the information to him and immediately start your home search once approved. Approval is usually only a couple hours when your notified, not days. Look forward to hear from you!!!
Vanessa Vargas
Keyes real estate
0 votes Thank Flag Link Wed May 30, 2012
Those are a lot of good questions. I have a great mortgage broker with whom I work in Boca. His name is Tony Acquaviva. Not only will he be able to get you all of the information, but he will be able to get you a great loan as well.

Here is his contact information
Tony Acquaviva #75842
US Mortgage of Florida
4400 N Federal Highway
Boca Raton Fl 33431
office 561 886 0300
fax 561 886 0301

If you need help with the condo, feel free to contact me


Howard Vogin
0 votes Thank Flag Link Wed May 30, 2012
If you have no earned income, do you have income from investments? trust? interest? If you have income that can be used for a mortgage. Also if you have investments, that can be securitized for a mortgage.
In other words you need to speak to a lender on what your options are.
0 votes Thank Flag Link Wed May 30, 2012
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