Can we get it...FHA 2nd Mortgage or Fannie Mae/Freddie Mac

[Anonymous]

We are wanting to get a new home, you all here are pretty knowledgable and I  just wanted to seek opinions/thoughts.   We would have to do FHA or FannieMae/FreddieMac because we would have a non-occupant coborrower. 

Thinking FHA second Mortgage because recently married and adopted a child. (life changes, like bigger family say to qualify)

Credit Scores for main loan holder: TU, EX, EQ all 785+ FICO

Credit Scores for co-borrower: TU, EX, EQ all 791+ FICO

Main loan holder is 1099 - last two years income after deductions are 25k 2016, 37.7k 2017

Co-borrower was W2 - 44k last two years

Co-borrower is now retired as of a month ago - receives retirement, has 401k, CD's etc.

Monthly DEBT payments:

$550 (car payments)

$45 (credit card minimum)

$595 (current mortgage) - will be saleing for a great profit or renting for twice the mortgage amount.  Was told will not count as debt if we have a year signed lease with cleared security deposit into main loan holders bank account.

Very very few inquiries on all reports for each borrower - less than 3 over the last two years.

No negatives at all reporting.

We are wanting to get approved up to about $250k but plan to use only $220-230k.  Do you think it would be possible?

[H-B]

That shouln't be problem unless property taxes are higher in you area. If you are buying under FHA make sure non-occupied co borrower is family member otherwise you have to bring 25% down payment. You can buy under conventional loan with 5% down payment. 

[Anonymous]

Thank you for the reply!

Taxes in this area is about 1% the price of the home, so for a 230k I'm thinking it should be $2300ish a year, if we homestead it would be less than 2k.

We haven't had luck finding a bank that will allow a non-occupant co-borrower for conventional and only 5% down.  If you or anyone else has suggestions we are defintiely open to it!

[kc0039]

---

@Anonymouswrote:

Thank you for the reply!

Taxes in this area is about 1% the price of the home, so for a 230k I'm thinking it should be $2300ish a year, if we homestead it would be less than 2k.

We haven't had luck finding a bank that will allow a non-occupant co-borrower for conventional and only 5% down.  If you or anyone else has suggestions we are defintiely open to it!

---

Why would you need a non-occupant co-borrower? If we can count your current home as a rental and use that as income to buy a new home, that should be fine.

1. How much is monthly retirement from your co-borrower?

1a. How much is co-borrower getting from the 401k monthly?

1b. How much is co-borrower getting from an IRA?

You can do non-occupying co-borrower all day long for conventional. I know I can do it since it follows Fannie Mae guidelines. I just have to include the non-occupying co-borrower's liabilities along with everyone.

[Anonymous]

Home Ready by Fannie Mae is the way to go with this one.