Home Buying in Beaverton>Question Details

Cathy, Home Owner in Beaverton, OR

Conditions of home loan approval in Beaverton. Oregon

Asked by Cathy, Beaverton, OR Wed Oct 26, 2011

My sister would like to purchase a small property in Beaventon, Oregon. She has some equities and a stable income, say around $1300 per month. If she is able to pay for 50% of the property, can she apply for a home loan to cover the other 50% ?

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Cathy,

You sister would be wise to meet with two or three different kinds of mortgage lending professionals and ask their opinion about what she can afford and what she can qualify for (which is not always the same). She may want to talk to a local bank or credit union, a mortgage broker, and a mortgage banker (these are companies which lend their own money as well as shopping the market for other loan programs). It may also be prudent, depending the interest rate for which she qualifies, for her to save some of her cash reserves and finance a larger percentage of the purchase. They will all give her those options. I do not sell property in the Beaverton area, but I do work with several metro-area lenders and can provide you with information about some reputable lenders of different types upon your request.
1 vote Thank Flag Link Sun Oct 30, 2011
Typically she can count any source of income that has a two year history and has the expectation to pay out for a minimum of another 3 years. Any irregular sources of income would be averaged over the 2 unless it was declining which could pose some issues. Any losses or carryovers would be counted as a liability. She may not need to put as much down depending on her countable income, debt loads, and amount of money she wishes to borrow. Let's not forget about credit and past financial history. Her best bet is to submit her last 2 years tax returns, schedules, and supporting documentation such as 1098s, W2's. Also bank statements for the last months and 30 days pay stubs for the regular income so that you can obtain a full credit approval from a lender not just a pre-qual... HUGE difference!
1 vote Thank Flag Link Wed Oct 26, 2011
A lot more information is needed to determine whether she could get a mortgage, information like:

Is that $1,300 monthly income net or gross?
What is her credit history?
What is the price of the home she plans to buy?
How long has she been at her current occupation?
How long has she been in her current field?
Does she have documentation to verify her income?
What other debts and monthly payments does she have?
What is the source of her down payment? Is this source verifiable?

The best place to start is by talking to a loan officer. You can get tips for screening loan officers at: http://www.bybryson.com/advice_center/tips_mortgages.htm

If you need referrals to a loan officer, please feel free to contact me.
Web Reference: http://www.bybryson.com
1 vote Thank Flag Link Wed Oct 26, 2011
Most lenders would love to make loans to people who put 50% down (I think that's what you meant when you said she could pay for 50% of the property). Her limiting factor may be income, as most lenders think house payments should be no more than 30%, or maybe 40% of net income. So the first question is, how much home could she buy for a $400 monthly payment, with 50% down? The second question is does she have that amount to put down? The third question is, would she be happy in living in the kind of home that will buy.

Let me recommend a couple of mortgage brokers who can sit down with the two of you and run real numbers, then let's go look at 4-5 homes in that price range.
0 votes Thank Flag Link Wed Oct 26, 2011
Yes she can. You don't mention the price of the home but I can run some numbers for you if you email me. Congrats!

Genie Shook
Principal Broker
0 votes Thank Flag Link Wed Oct 26, 2011
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