"Roommate" income

[Anonymous]

Can this be done in any state?

[Anonymous]

It can't be done in any state, bottom line.  If your income is used in any shape or form to qualify for the loan YOU HAVE TO BE ON THE MORTGAGE/DEED OF TRUST AND THE PROMISSARY NOTE.  No ifs ands or buts. Stated loans used to be one of the loopholes lenders would use to put buyers into homes without documenting income. Let's say you and your spouse apply, you go stated so your loan officer only sates your income and inflates the hell out of it so does not have to state any income for your spouse, no doc loans were also very simular those two loans programs coupled with 80/20's and adjustable rates are a very big part of why the housing and mortgage markets are where they are at today.  Always buy within you limits.

[Anonymous]

That's kind of what I figured when I heard the scenario. This was done in 2006. I don't suppose there was a loop hole during that time do you? I know this was before the housing crunch.

Since the husband works in loans, how is it that he pulled this off?

[ShanetheMortgageMan]

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trashyart2000 wrote:

That's kind of what I figured when I heard the scenario. This was done in 2006. I don't suppose there was a loop hole during that time do you? I know this was before the housing crunch.

Since the husband works in loans, how is it that he pulled this off?

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A "no ratio" documentation might've been used, where no income is used on the application... that documentation type has since been eliminated from the marketplace but was very prevalent back in 2006.  If income was on the application, then perhaps it was done by lying about the wife's income on the loan application.

[Anonymous]

I am still curious about this post so I want to keep it alive. I find that the couple I am talking about is sneaky.

If the couple's main purpose in getting a no doc loan (if this was the case) due to the hubby's poor credit which would drive their rates up, why would it make any sense to do this?   By doing this, wouldn't it hinder his borrowing power in the future for other things if he just doesn't bite the bullet and pay the higher rate now so in the future, he can reap the rewards of a higher credit score?

[ShanetheMortgageMan]

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trashyart2000 wrote:

I am still curious about this post so I want to keep it alive. I find that the couple I am talking about is sneaky.

If the couple's main purpose in getting a no doc loan (if this was the case) due to the hubby's poor credit which would drive their rates up, why would it make any sense to do this?   By doing this, wouldn't it hinder his borrowing power in the future for other things if he just doesn't bite the bullet and pay the higher rate now so in the future, he can reap the rewards of a higher credit score?

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People are driven to buy homes by more than just "financial sense", perhaps their emotions got the better of them and they decided it was better to buy a home then with a higher interest rate than working on their credit to qualify with a lower interest rate.