I'm gearing up for my mortgage application next month. The one thing that could be a hangup is how they consider income received from a promissory note on a marital home OR if they consider the marital home a "contingent liability". I do not have a full 12 months payment history, but I do have 4 months plus the legal document (note).
If they will not include the income or exclude the payment, I may be in a very tight back end DTI spot. I could go FHA and be OK DTI-wise or I could tap into the last of my liquid savings to pay down the marital home to 6 months of payments remaining. Either way, it's $6,000. Part of me thinks I should pay down the other mortgage, then have my estranged husband sign another agreement to repay that money on top of the buyout. The other part of me thinks I should put the down payment on my own house. USDA is the better deal in the long run, though, right?
I'm hoping this is all moot and when they finally see the documents, they will include the income and all will be good, but I'd like my head straightened out around it beforehand just in case.
Opinions?
Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)
