Home Buying in 11209>Question Details

Emile.caires,  in New York, NY

Is it possible to get approved for a home loan if my husband parents co-sign it?

Asked by Emile.caires, New York, NY Mon Feb 4, 2013

My husband has great credit score (750) and we have 20% down payment for the house but due to his credit card debt, his debt margin is 40% and we need it to be 25% in order to be approved for a home loan of $160,000. My question is if his parents co-sign with him what are the chances that he will get approved for a loan of 160,000? Thanks!

Help the community by answering this question:


Hi Emile. Def need to meet with a Loan Officer so he can take a look and advice you. There is much more than just credit scores that determine if it would work or not. I am wondering what loan program you're looking into. If you mean that your new mortgage and your husband's existing monthly credit liabilities is about 40% of his monthly income, that sounds like a pretty good debt-to-incoome ratio to me, why do you say it needs to be 25%? If this is the case, there is a good chance that you might not even need your in-laws' help. Again, there is so much more to it than the info you're providing, I strongly suggest you and your husband meet with a Loan Officer and take it from there.

If you need any help, I am always available to meet in one of our NYC branches. Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
(516) 606-9648
2 votes Thank Flag Link Mon Feb 4, 2013
I don't know.. I keep hearing your husband is not eligible. He's making from 2011-2012 about 60K and he has 40% debt income from all his credit card and student loans. He's getting a 401K loan to pay off all his credit card which are about $20,000, but because he has student loans he still not eligible. I am a freelance officer admin and I am new to credit so i can't be his co-borrower. I need to make some credit, and get a full time job of $35,000 or more to be able to come in and help my husband purchase the co-op and the loan officer said that he doesnt even know if that will get him approved. I am hopeless! It's very difficult to buy anything in NYC. My husband has a great credit (750) always pays his bills on time and we have 20% down payment. We are ready but not according to a loan officer. I don't know what else to do.
Flag Mon Feb 4, 2013
Very likely that you should be approved.
0 votes Thank Flag Link Tue Feb 5, 2013
Good afternoon Emile.caires,

Interesting scenario in that I'm not sure where or why you're coming up with the 25% Debt-To-Income (DTI) ratio and the other one of 40%. Were these numbers calculated by your mortgage professional?

Because most conservative guidelines for Conventional Loans and Government Insured Loans (including FHA, VA and USDA) have higher DTI requirements.

So, before you begin bringing family members in to assist you in qualifying (which is allowed under certain guidelines/programs) and potentially "mucking up the works" of your qualifications (those same guidelines can be more stringent when using Non-Occupant Cosignors), you need to get an accurate assessment of your qualifications, including a correct calculation of your Debt-To-Income ratios.

Meet with a Local Mortgage Banker in person for your mortgage Prequalification.

Mortgage Bankers in your community will provide you with a much higher quality of service and financing options than any "Big Bank." Local Mortgage Bankers have long been the source of excellent financing options for homebuyers. Further, Loan Originators who work at Mortgage Banks are LICENSED whereas Loan Originators who work for the "Big Banks" are REGISTERED. There's a BIG difference.

Sit down face to face with your Mortgage Banker to be thoroughly prequalified. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Consumers have been led to believe---thanks to huge advertising budgets with the BIG BANKS---that they should go to their bank for a mortgage loan. This is the WORST place to get assistance with the BIGGEST PURCHASE of your life! These BIG BANKS are basically BIG CORPORATIONS. You're a number, at best. With a Local Mortgage Banker you will be treated like a friend and a client for life. You can't imagine the high quality of personalized service you will receive from a Mortgage Banker until you try.

As to price---rate and fees---competitive if not better than the BIG BANKS.

You can verify the License of any Licensed Mortgage Loan Originator at nmls.consumeraccess.org

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

If you thought my answer was helpful, please give me a "Thumbs Up." Thanks!
0 votes Thank Flag Link Mon Feb 4, 2013
Ok. So my loan officer explained everything to me.. first of all he is from Citi Bank and they only except 45% debt ratio and he told me that my husband has 74% that's from his credit card which is ONLY 12% and 32% are his student loans. He unfortunally counts his student loans. If I can get a loan officer to contact me that doesnt count student loans as debt please I would appreciate it. I am very interested. Unfortunally, most banks don't have that program. It's ridiculous and sad bc my husband pays ALL his bills on time and he has great 750 credit score!!
Flag Mon Feb 4, 2013
Much depends on the qualifications of his parents i.e. income and credit. I would suggest talking to a mortgage professional and have them provide to them their information. Theoretically it should be possible.
0 votes Thank Flag Link Mon Feb 4, 2013
Dear Emile:

There is not enough information here for us to give you a definitive answer. You need to speak to a mortgage banker and get yourself pre-qualified. When you do that, make sure that you, your husband and his parents all meet with the banker together to go over all of your qualifications. This way there will be no mistakes.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon Feb 4, 2013

Chances are pretty good, but ask the expert.

If you call Dominick Sutera of Academy Mortgage Corp, he will be able to give you a definite answer and guidance.

Dominick is the guy who teaches the rest of the loan officers and he knows his business.

Reach Dominick at 516-249-4800 or dsutera@BankAMC.com

0 votes Thank Flag Link Mon Feb 4, 2013
Hi Emile,

Having your husband's parents cosign may help or harm your chances depending on their own credit, income, assets and debt situation, of which you made no mention. Also, I'm not sure why you said your husband's debt to income ratio needs to be brought down to 25% for you to be approved. I routinely get buyers approved for mortgages of all sizes and types who have debt to income ratios that are higher than 40%. It's possible that your current lender, if you have one, may have uber conservative underwriting guidelines. The only way to know is to get a second opionion from a licensed and experienced loan officer working with a direct lender. I can provide you with a complimentary second opion without cost or obligation and can be reached directly at 917.699.0183 or via email at michaeldenniston247@gmail.com.

Michael Denniston
Senior Loan Officer
NMLS License 24076
Cliffco Mortgage Bankers
Direct Lenders
New York
0 votes Thank Flag Link Mon Feb 4, 2013
For a personalized answer visit with any licensed loan officer. Since yo mentioned debt, to consider--the economic factors of your lifestyle that would impact on your individual comfort level of affordability. A mortgage outside your budgetary constraints can dramatically alter your overall living conditions. So, be sure to factor micro and macro economic concerns into your mortgage amount deliberations. Also, be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Mon Feb 4, 2013
Hello Emile,

If the co signer is good, yes, I don't see why not. This is a question you should discuss in depth with a mortgage broker though. If you need a mortgage broker or help finding a home, call me anytime!

Cell#: 212.300.3919

Luke Constantino
Remax At The Slope New York
M: (212) 300-3919
F: (347) 587-2828
261 4th Avenue Brookltn NY 11215
0 votes Thank Flag Link Mon Feb 4, 2013
Yes. Parents can Co sign for a loan and we count the combined income and expense. We can use non occupying Co signers for either FHA or conventional loans.

If you would like to discuss this in more details, fell free to call me.

Isaac Weiser
0 votes Thank Flag Link Mon Feb 4, 2013
Hi Emile
It is best to speak to a mortgage banker for this question. If you send me your direct email
I can give you somebody's name to speak to.
0 votes Thank Flag Link Mon Feb 4, 2013
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