topic Re: Help Getting Girlfriend Approved!! in Mortgage Loans

Help Getting Girlfriend Approved!!

Anonymous — Mon, 11 Jun 2018 19:48:34 GMT

So me and my girlfriend are looking at buying a house. We are putting it in her name because my credit isn't the best. But that's for another post lol. We had a friend who works for a lender run her credit. She was approved for $100k with a $9 down payment FHA. That seems wrong to me. He said her DTI is high from student loans.

She makes about $45k a year.

Her credit score is at 750.

She has a car lease for about $300.

She has about $1.8k in CC. But we plan on paying those off quickly!

She has about $47k in student loans.

Now my brother recently passed and my family received life insurance from that. Me, my mom, and brother are on the account. We have over $200k in it. Would adding my GF to the account affect anything in a positive way. I would like to do a down payment no more then $10k as the money isn't all mine.We do have a account with NFCU as my brother was in the military.

What do you guys recommend?

Does that approval seem right?

Re: Help Getting Girlfriend Approved!!

ShanetheMortgageMan — Tue, 12 Jun 2018 02:02:07 GMT

Sorry for your loss.

Do you mean a $9k down payment?

Are the student loans in repayment? How much is the payment? Is it an income based, or a graduated payment plan? With FHA loans, for student loans lenders will use 1% of the balance as a monthly payment unless the actual monthly payment fully amortizes the loan (means it'll pay it off at the current level, rather than the payment varying over time). So the $47k in student loans could equal a $470/mo payment.

Has your loan officer discussed conventional financing with you? At a 750 credit score, it's well worth looking into. If she's a first time homebuyer then there is a 3% down payment option, and if her income considered "moderate income" for your area, or if you buy in specific areas, then there is discounted PMI as well. https://www.fanniemae.com/singlefamily/homeready & http://www.freddiemac.com/singlefamily/homepossible contain additional details on them. Further, with the Fannie Mae option, whatever the student loan monthly payment reporting to credit is can be used to qualify, not 1% of the balance. Guideline for that is https://www.fanniemae.com/content/guide/selling/b3/6/05.html#Student.20Loans.

Adding her to that bank account wouldn't give her more qualifying income, but it could potentially allow a higher debt ratio to qualify. When someone is using a bank account to help them qualify and there are other people on the bank account, the other people on the bank account (your mom, your brother & you) would all need to write a letter stating she has 100% access to the funds in the account. Something to consider.

Re: Help Getting Girlfriend Approved!!

Anonymous — Tue, 12 Jun 2018 17:56:43 GMT

Yes sorry I did mean $9k down payment!!

I don't know what you mean by repayment. She finished school and has been paying them off for over a year.

The payment is income based. Currently she pays about $150 a month. Does that mean they will still consider the payment to be $470? Or would she have to do a Fannie Mae loan for that to be the case? Her loans aren't deferred or in forbearance.

We did talk about conventional but it seems like me gifting the down payment would be a problem. I wanted to do the 97-3% down payment option but the lender made it seemed like it would be to hard.

Do you know anything about the NFCU process?

Re: Help Getting Girlfriend Approved!!

kc0039 — Tue, 12 Jun 2018 19:31:15 GMT

@Anonymous wrote:
Yes sorry I did mean $9k down payment!!

I don't know what you mean by repayment. She finished school and has been paying them off for over a year.

The payment is income based. Currently she pays about $150 a month. Does that mean they will still consider the payment to be $470? Or would she have to do a Fannie Mae loan for that to be the case? Her loans aren't deferred or in forbearance.

We did talk about conventional but it seems like me gifting the down payment would be a problem. I wanted to do the 97-3% down payment option but the lender made it seemed like it would be to hard.

Do you know anything about the NFCU process?

Conventional loans would be the easiest for her. Gifting her the downpayment involves a check, a deposit slip and a transaction history showing the deposit. $470 would be FHA, and using the income based repayment, we will use $150 as long as she can prove it.

Re: Help Getting Girlfriend Approved!!

ShanetheMortgageMan — Tue, 12 Jun 2018 21:22:10 GMT

Repayment means they are being repaid, rather than in deferment which does not require a payment to be made. Since she is making payments, the student loans are in repayment.

Since it's an income based payment, FHA will use $470/mo but if you choose Fannie Mae financing instead then ~$150/mo would be used.

With Fannie Mae financing, gifts can come from:

a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or
a fiancé, fiancée, or domestic partner.

Your girlfriend, technically, is none of the above. However, if you've lived together for a considerable amount of time and it can be documented, you may be able to convince the underwriter it'd be OK since you have a long established relationship. If that doesn't work, and you two are ready, you could get engaged and meet the fiancé/fiancée requirement.

I don't know much about NFCU's process or guidelines. I've spoken to them over a dozen times, and you'd think someone in the industry would able to get more than just basic information out of them, but it's like pulling teeth to find out anything more than minimum score and down payment requirements. They always have had to speak with a supervisor and get back to me.

Re: Help Getting Girlfriend Approved!!

Anonymous — Wed, 13 Jun 2018 00:57:37 GMT

Thanks for helping me out!!!!

I'm gonna have my loan officer looking into the Fannie Mae. Should we apply for NFCU directly or through the loan officer?

Re: Help Getting Girlfriend Approved!!

ShanetheMortgageMan — Wed, 13 Jun 2018 01:08:39 GMT

You're welcome. The only way to get a loan from NFCU is directly from a loan officer who works at NFCU. They don't offer any other relationships, such as through a mortgage broker.

Re: Help Getting Girlfriend Approved!!

Anonymous — Wed, 13 Jun 2018 01:27:27 GMT

Awesome I'll have her try for the preapproval through NFCU and see what happens. I'll update you guys in a couple of days.

Thanks again!!!