Home Buying in 21206>Question Details

Denise, Home Buyer in 21206

can I buy a home with my daughter although i am MARRIED AND LIVING WITH MY HUSBAND?

Asked by Denise, 21206 Sat Dec 31, 2011

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15
Yes I am doing one right now for a father and daughter. FHA allows a non occupant co-borrower. You would have to contact me to deternine if both of you qualify for the type of loan. Hope this helps please let me know if you have any questions.
1 vote Thank Flag Link Sun Jan 1, 2012
I know this is a bit late, but one big consideration that wasn't mentioned by anyone is that the new mortgage payment will have an impact on you every time you apply for any other credit. As long as your monthly debt (what would show up on a credit report, which is all that is considered for qualification), including your mortgage payment(s) is less than 35% of your gross income (approximately), you should still be able to get new credit cards, auto loans, etc. I can figure out the numbers for you and tell you the best way to structure the purchase.

As others said, you can do it as a non-occupant coborrower with an FHA loan. If the home is far enough away from your primary residence, you may be able to buy it as a second home, using conventional financing, which would have a lower monthly payment than FHA. Call me if you need me. 443-283-2922.
0 votes Thank Flag Link Thu Jan 12, 2012
A great way for young adults or those with limited credit to buy their first home is by using the FHA Non-Occupying Co-Borrower program. FHA allows a non-occupying family member to co-sign for a borrower when they cannot qualify on their own due to income reasons. A co-signer cannot make up for bad credit; only the lack of credit and/or sufficient qualifying income.

There are many scenarios in which the program can help:

· Occupying borrower is a college student with limited verifiable income for qualifying purposes

· Occupying borrower works for cash income

· Occupying borrower has been self-employed for less than 24 months and thus has non-allowable income for qualifying purposes

· Occupying borrower recently made a complete change in employment field and has non-allowable income for qualifying purposes

· Occupying borrower has no credit and cannot provide non-traditional credit sources

· Occupying borrower recently received a large pay increase not consistent with earnings history rendering income non-allowable for qualifying purposes

· Occupying borrower is between jobs or assignments rendering qualifying income not usable

· Occupying borrower was recently discharged from military or is expected to be discharged from military in near future and has not secured civilian employment for qualifying income

· Occupying borrower is recently returning to the workforce after an extended leave of absence

Standard niece and loan limits apply for transactions including non-occupant co-borrowers when the subject property consists of one unit and when the non-occupant is related to the occupying borrower by blood, marriage or law. Additional family relationships will allow for maximum financing as well. For example, an uncle can co-sign for niece/nephew. When the non-occupying borrowers are not related by any of the situations described above, loan-to-value is limited to 75%.

All applicants are required to sign the note and mortgage and must be listed in title to the property regardless of occupancy. The non-occupying applicant must understand they are financially responsible for the mortgage so if they occupant does not make the payment and the loan defaults it will have a negative impact on both of their credit profiles.

FHA guidelines do not require qualifying of the occupying borrower but lenders are looking to see that they are capable or will be capable of making the payments themselves. The whole scenario has to make sense and it helps to have plenty of compensating factors like low DTI, plenty of reserves and steady income.

For more questions or details about getting pre-approved for this type of loan please contact me at your convenience.

Elliott R. Oliva
NMLS #353884
Mortgage Banker
Primary Residential Mortgage, Inc.
202-681-1636 direct
eoliva@primeres.com
"Se habla Espanol"
0 votes Thank Flag Link Fri Jan 6, 2012
Of course. You need to really think about the long haul of owning a home with your daughter. The financial responsibility is a conversation that the two/three of you need to have. You should alone get the sound advice of a lender who can explain all the end and outs of what can happen if one or either of you default in the future. You just never know.
0 votes Thank Flag Link Fri Jan 6, 2012
Hi Denise,

As everyone one else has indicated, yes you can.

How many miles away is your daughters new house from yours? From past experience if it is a good distance, like another state, you can be considered an investor and not an owner non-occupant. Contact a good lender that knows all the ins and outs. They will give you the best advise on how to proceed. If you have cash and can gift the money to your daughter, that may be the easiest.
0 votes Thank Flag Link Tue Jan 3, 2012
Hi Denise!
It may be possible, depending on both yours and your daughter's situations. There are loan types where you could be considered a co-signer, if you and your daughter qualify.
If you'd like to speak to a loan officer who can shed more light once knowing more of your details, please let me know.
Much luck to you & your daughter.
Please let me know if I can help you further!
Sincerely,
Marney Kirk
Keller Williams Excellence Realty
0 votes Thank Flag Link Mon Jan 2, 2012
Yes you CAN! As long as she is over 18 years old, a lender can either use one of your income or both of your incomes for qualification. Keep in mind that whenever you decide to refinance or sell the house in the future, both of you will need to agree and sign the necessary documents for those transactions. Feel free to contact me for any other questions. Have a great 2012!
0 votes Thank Flag Link Mon Jan 2, 2012
Absolutelty. However, you need to be very careful doing this as you would basically be responsible for the payments as much as your daughter would if you are on the loan. It would not be your primary residence, but I assume it would be your daughter's. You need to get some advice from a local lender that you can trust to advise you. I recommend Bob Mowrey with Susquehanna Bank. His direct number is 410-404-0095. If your daughter needs your income to qualify for a purchase, then you would need to be on the mortgage loan as a co-signer. If she only needs some down payment money, you can gift that to her and then you would not have to be on the loan. If the funds that your daughter needs is substantial, you could always be placed on the deed as an owner for the amount of money that you would want to be repaid when the property is sold to ensure future repayment.

Just be cautious if you are on the loan as one late mortgage payment can hurt your credit more than just about anything. So, you want to ensure that the payments are being made on time. Give Bob a call and I am sure that he can offer you even more advice about the lending side. If you need an agent to help you find a property, please feel free to give me a call and I would love to help you.

Good luck and have a great New Year!

Tina Beasley
Broker, ASP
Better Choice Realty, LLC
0 votes Thank Flag Link Sun Jan 1, 2012
Yes! It's called co-signed, you can buy a house with your daughter, especially if she doesn't have enough income or credit score to support the price of house she wants to buy, If she doesn't currently own a house she may still be qualified for partial first time home buyer credit.
How-ever if your debt and income are joint accounts with your husband then he may of to be included.
0 votes Thank Flag Link Sun Jan 1, 2012
Yes, however you may be limited by the type of loan you choose as some require you to be an owner occupant.
0 votes Thank Flag Link Sun Jan 1, 2012
You can buy a home with anybody you wish. If you buy a home with your daughter it is important for you to decide who will own the home in the event either you or your daughter die. . If you choose to have the home titled under joint tenancy the ownership of the home will go to the surviving owner. If you choose it to be titled as tenants in common one half ownership will pass to the estate of the deceased and ownership will be determined by that persons will.

Bob McGee
Advance Realty Timonium
410-560-4574
0 votes Thank Flag Link Sun Jan 1, 2012
The answer to that question is - it depends. There are a lot of factors involved here. Are you on title for your primary residence? If you are then that may prevent your daughter from taking advantage of the first time home buyer credit from the state. It also depends on your credit, your income to debt ratio, your income and a number of other items. The best thing for you to do would be to sit down with a visionary loan officer and realtor who think outside the box and discuss the options. I would be happy to discuss your options with you and refer you to a great loan officer. In this economy a lot of parents are helping their kids out to get into their first home or to purchase a home where they can both live together.
June Piper-Brandon - 410-292-0100
Associate Broker
Century 21 Associates
0 votes Thank Flag Link Sun Jan 1, 2012
Yes you can. However, it will all be predicated on whether you both can qualify for a mortgage, if you are not planning on paying cash. If you are going the mortgage route then you both will need to speak with a lender to get pre-qualified. You will have to provide information regarding your income, debts, savings and they will pull you credit. Once the lender says you can buy a home and tells you how much home you can afford the rest is pretty easy - determine where you want to buy the home and what amenities you want. If you need assistance please feel free to reach out to me at john.maranto@comcast.net or via cell phone - 443 564 0952.
0 votes Thank Flag Link Sun Jan 1, 2012
Yes you can using FHA financing as a non-occupant co-borrower. You will have to have to have addtional income assests for qualification purposes on your present home mortgage with your husband and the new mortgage with your daughter.

You and your daughter should consult a lender to analyze your present financials for you and your daughter.
0 votes Thank Flag Link Sun Jan 1, 2012
Can you buy a home with your daughter (or basically anyone else you want to?) Yes. But unless you pay cash to do so, it gets complicated. You may want to consult a lawyer to draw up and agreement, and learn about the various types of ownership available.
0 votes Thank Flag Link Sat Dec 31, 2011
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