Sorry I'm so late coming into this, was busy the past few days.
Pmesritz, how much is owed on the home? If it's substantially less than the purchase price of $210k, would your FIL be OK in just having the mortgage paid off, or is he looking to get a profit on the sale (difference between $210k and what is owed)? You can use a "gift of equity" as the down payment if your FIL isn't looking to profit from the sale, the "gift of equity" would approximately be the difference between the sales price/appraised value and what is owed on the existing mortgage. I can explain more if you'd like, including the logistics, but I would need to know the answers to those questions I just asked.
Is the goal to remove the debt from your FIL's ownership (because I know there is some disability that is diminished if someone owns a home), or are you trying to reap the tax benefits of having a mortgage?
Student loans will count in your debt to income ratio unless you are going for an FHA loan program, and they will only be excluded from your debt to income ratio on FHA if they are deferred for 12 months or more from the day you are closing on the home/mortgage. When are the student loans deferred until? And out of curiousity, how will the student loans be paid off within 3 months of them going into repayment?
You also said "we are looking to purchase", does that mean you are talking about your spouse as well? Does he/she make income? You only referenced your income is why I ask.
Edited to add: When you receive income from someone who is living in the same unit as you (which would be the same house if it's a single family residence or condo, or the same unit if it's a multi-family home such as a duplex, triplex, 4-plex) it is called "boarder income". Boarder income can be used if there has been history of getting it in the past, and it can be documented (with cancelled checks), a boarder income agreement isn't usually required. If you haven't received the boarder income in the past, then it can't be used to qualify for the new mortgage.
Message Edited by ShanetheMortgageMan on
01-09-2008 07:49 PM
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