Can my wife claim my income when applying for a home loan, if I am not going to be on the mortgage?

Asked by Ken, Dearborn Heights, MI Tue Apr 7, 2009

Without beating around the bush, I plan to walk away from my current home. I bought in 02 for 99k. 20 year loan at 5.25% I owe 82k and the homes est. value is around 50k. Both homes on either side have foreclosed and 1 resold for 14k. I have a family to raise and need to get out from under this mess. Help Please

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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Wed Apr 8, 2009
Lending answer:

No matter where you go, you will have to qualify for both mortgage payments (current home plus new home) and have 6 months worth of mortgage payments in the bank after closing. "Mortgage payment" includes principal, interest, property taxes, home owner's insurance, and association fees if applicable.

Fannie Mae, Freddie Mac, and FHA all now require the above in reponsesto "Buy and Bail" fraud in which homeowners buy a new home and allow the prior home to foreclose.

Only borrowers who are on the note may have their incomes count towards qualifying.
0 votes
Bob McClure, Other Pro, Walled Lake, MI
Tue Apr 7, 2009
good evening ken........are you on an fha loan now or not?......second....if you are not...then you could finance fha on the next one..if you are.then you would have to finance conventionally.....i assume your wife isn't on the existing loan....do not do anything with your existing home until you have your exit plan completed......i can help you through this if you would like.i have over 14 yrs. experience helping clients in tough deals in michigan..i hope that helps......bob mcclure- success mortgage partners-plymouth, michigan
0 votes
smith3gary, Agent, White Lake, MI
Tue Apr 7, 2009
Ken,

I urge you to try keeping your home. What you're considering may be considered fraud and since the FBI is asking Congress to require real estate records kept for 10 years instead of 7, I assume they will be investigating this scenerio by home owners.

See if one of these websites can help.

State of Michigan http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177801--…

Federal Government http://www.hud.gov/local/index.cfm?state=mi

Federal Government http://www.makinghomeaffordable.gov/

There are many options available, some require qualification and some third party providers on these sites may require a fee.

Every one of us is in the same boat. Once the excessive number of foreclosures have been removed from the market, it will stabilize and slowly improve.
Web Reference:  http://mi-living.com
0 votes
Lori Lewis, Mortgage Broker Or Lender, Bethlehem, PA
Tue Apr 7, 2009
No. When use use someone's income you have to use their credit and the foreclosure will show up. You may need to rent for awhile. Good Luck!
0 votes
Tony Grech, Mortgage Broker Or Lender, Southfield, MI
Tue Apr 7, 2009
No. Only those borrowers on the mortgage can have their income counted towards qualifying. To use your income, the lender would have to consider your debts and credit as well AND you'd have to go on the loan.

If your wife is having trouble qualifying based on her income, then she could always look to have a relative act as a cosigner if she does an FHA loan.

Otherwise, you're probably going to have to rent awhile

Best of luck
0 votes
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