We just quit-claimed my partner onto a two unit property in Chicago & its mortgage-free. Does my partner have to wait 6 mths to apply for a loan?

Asked by Dan, Whiting, IN Mon Oct 22, 2012

We just quit-claimed my partner onto a completely rehabbed two unit property in Chicago & it is mortgage-free. Does my partner have to wait 6 months with his name on the deed to apply for a loan since he is the one with the better credit score? It is not going to owner-occupied?

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9
Jorge Vega, Agent, Chicago, IL
Mon Oct 22, 2012
Most lenders will go off of purchase price within six months. You will have to wait until your six months are up since you quit claimed him on and didn't sell to him directly. Either way speak with a loan officer at a bank to get other options like line if credit. Good luck
1 vote
Joanna Weiss, , Chicago, IL
Thu Mar 21, 2013
Yes, he will need to wait 6 months, because it would be condisered a cash out mortgage. This requires a 12 month chain of title. Basically, the lender will check the ownership of the property for the last 12 months to see that he has been on title for at least 6 months. I would be happy to help him secure a mortgage. Joanna Weiss 773-327-3580
0 votes
David Hanna, Agent, Chicago, IL
Mon Mar 18, 2013
You need to talk to the lender you are planning on using before you make any more decisions. You may already have made this more difficult with the quit claim deed. Don't do anything else until you have this conversation, and are crystal clear on the process and parameters for getting the loan.
0 votes
Joe Schiller, Agent, Chicago, IL
Mon Mar 18, 2013
seasoning issues are not to be messed with.. be safe and wait
0 votes
Joanna Weiss, , Chicago, IL
Mon Oct 29, 2012
Fannie Me and Freddit Mac require that the title be held for 6 months before you are able to do a cahs out refinance. Let me know if i might be able to help you. Joanna 773-327-3580.
0 votes
Evelyn S. Fr…, Agent, Chicago, IL
Tue Oct 23, 2012
Hi Dan,

I think it may also depend on the bank you plan to use. I just had a similar case in that the seller was flipping and one bank (Chase) required he hold the property for 180 days, another (yup, Chase again) said 90 days from the recording date. Confusing, I know.

Your best bet is to speak to a lender directly. Call Matt Bukovy 773-416-7107 with Wintrust Mortgage or your local banker.

Good luck!
0 votes
Bill J Delig…, Agent, Naperville, IL
Mon Oct 22, 2012
He can apply now, but for the 1st year the value used for loan purposes will be the lesser of Purchase Price or Appraised Value.
0 votes
David Hanna, Agent, Chicago, IL
Mon Oct 22, 2012
Dan, why didn't you just sell it to him? That loan would have had more options. If you haven't recorded the quit claim deed yet, wait until you talk to a lender....
0 votes
Hi David and thanks for your answer. Unfortunately, we just recorded the quit-claim deed last week. Additionally he will be refinancing his other properties.
Flag Mon Oct 22, 2012
Judy Higgins, Agent, Fairfield, CA
Mon Oct 22, 2012
No, but he will have to qualify on three other counts. Income, employment and credit history.
0 votes
Thanks Judy, he has been self-employed for 20 years, has enough income and has a credit score of 800? I was told from a personal banker from Chase that it is industry standard to be on a deed for 6 months before qualifying for a loan? I had never heard this unless you are applying for a FHA loan in which case we are not?
Flag Mon Oct 22, 2012
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