Want to Streamline or Assume FHA loan to get co borrower off
I have a unique situation...I had gotten into a jam back in 2007..In order to rrefinance I was required to have a co-borrower..I was told his debt would need to be rolled into mortgage..I said okay not realizing it was over 80k..I was still so grateful I deeded him 10% of the house...Fast forward to today..He lives in my extended living space in my 2 family home. He is paying back monthly his "borrowed money" plus the use of his space and all utilities included He does not speak to me because he charged up his credit cards again and stopped paying them.(lawyers were calling me going to put leins on my house, and then wanted to file bankrupsy, which he then never did) When I found out I had him sign a quit claim. The Bank told me it was okay to do that because I am the main borrower...I want to get him off the mortgage itself. I cannot do anything because he is still on the mortgage,and I dont want him involved as he is just so irresponsible and has turned out to be a real user.(I wont even get into that, I relize that no matter how long you know someone you never really know them) Is there anyway to get him off the mortgage? My income isnt high, and due to his debt rolled into my mortgage I wont meet the standard debt to income ratio...According to my property taxes, I am not upside down, but spoke to a realtor and she said I kind of am, that I will not get enough in a sale to pay realtor fee, balance and taxes, so that is not an option and with the housing market I dont think that will be an option anytime soon. I dont want to have any relations with this man. All payments for mortgage come from my checking account and have never been late. (Yes, I deposit his payoff debt check in my checking account..should I put it in a seperate account to show I am paying it??) What will I be asked for if I try to streamline to get him off or if I try to assume the mortgage...Last year the Bank told me I could assume the mortgage and sent me a package but it wanted info that I took was considering debt to income, which i know I dont meet so I never followed up! HELP!! by gracen_364_658 from Parsippany, New Jersey. Oct 7th 2012
Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions
If you are not currently on the existing Note, then you cannot streamline refinance it in your name. If you are on the Note and you take him off the loan, then you will be required to qualify with your income. It seems to me that he may need to sign again just so you can get a lower payment. If he is no longer on the deed, this may cause an issue. You may have to put him back on the deed. If you know of another family member that has good credit and income, you may want to look at refinancing with this person as a non-occupant co-borrower. You would still have to have an appraisal and income qualifying loan, but it could be an option you may not have considered.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Per FHA guidelines, the only way to remove a borrower from an FHA mortgage is 1) you have to prove that you have made the payments for the last 12 months, and from your own funds, not a shared account, and 2) It is fully qualifying, meaning w2's, 2 years taxes, pay stubs etc... No appraisal will be required, but you do have to fully qualify.. ... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
Sounds like you are basically screwed here unless you can refinance the property on your own merrit...i.e. your own credit score, income, DTI ratio's etc.
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
Hi we would love to see if we can help you. Most lenders will make you qualify yourself even with a steamline because you are taking someone off the mortgage. We can go up to 55% debt to income ratio. Give us a call tomorrow or Tuesday at 201-962-3555 or Team@BestMortgageOption.com
It is not a joint checking account..Our finances except this mortgage are and always were totally separate. I do deposit the check he gives me into my checking account...Do I need to not deposit into my checking(put it into savings) or it being solely my account would qualify that I am making the payments on my own?
Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions
email me at yourloanpartnerforlife@live.com linda i might have a referral for you to work in your situation
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