Question Details

ACM, Home Buyer in Los Angeles, CA

My fiance has two mortgage loans under her name, we're planning to buy a home, will that be a problem?

Asked by ACM, Los Angeles, CA Thu Dec 20, 2007

My fiancé and I plan to purchase a house in 2008. We both have excellent credit and are able to meet the 20% down payment. I’m a first time home buyer yet she assures me that we will have not problems getting a mortgage loan despite the fact that she has two mortgage loans under her name. 6 years ago her older brother convinced her to use her name to purchase a condo. He uses this unit as rental property the loan is in her name along with any and all paper work. In addition, 2 years ago her parents refinanced there home took equity to help finance there son’s business. Again both of her brothers convinced her to use her name in lieu of her parents and take on another mortgage. It was agreed that brothers will pay the mortgage thru the business. Both mortgages are paid up to date and on time. They believe that the both properties can be seen as a rental property and therefore getting another mortgage loan will not be a problem with lenders. Is that true?

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Answers

1
Yes. Some lenders will allow you up to 10 financed properties. You can only have (1) primary residence though - the other's can be investments or rentals.

Depending on your financial capability, you may have to document those (2) home payments (for a period of time) in order to remove those payments from your debt-ratios. If you make enough money to budget WITH the (2) payments then it shouldn't be an issue.
0 votes Thank Flag Link Fri Dec 21, 2007
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