Assuming Mortgage
My mother died about 6 years ago and my sister and I have been paying the mortgage payments etc...We both had been listed as owners on the house prior to her death along with her and actually authorized my mom taking out the current mortgage when it was done. Recently, I attempted to refinance under my name (my sister's credit prevented her). I was first told my the lender I could qualify for an investment loan (since I dont resident in the house); however, at the last minute was told of a new rule that prohibits me since I was on the house prior to my mom's death. So, then they attempted to qualify me under a conventional mortgage but because I have another mortgage etc...I was just short of the debt-to-income ratio. I am currently try to work to see what debts I can reduce or eliminate, but really want to get a sense from other experts if this all sounds right. I went from being told with confidence I'd qualify as an investor, alerting the current lender so I could get a payoff amount to not qualifying after jumping through countless hoops with paperwork etc... by nerd4mit809 from , District Of Columbia. Oct 16th 2014
Brian Allen (ballen)
#43 ranked lender in Maryland - 193 contributions
Why are you refinancing? if you have been making the mortgage payments then you can keep it as is. The first answer was incorrect and I'm sorry you were dealing with incompetence there has been no change in any rule if you are on the deed you are a owner and can refinance. If you need clarity on this situation I can be reached directly 301-685-6676 or email ballen@bankofengland1.com .
Ron Schwartz (RonSchwartz)
#69 ranked lender in Maryland - 63 contributions
First Thanks for your inquiry.From my perspective if i were trying to sell your loan to an udnerwiter I'd need to know1. Is the home currently occupied by a tennant who pays rent.2. Are you receiving that rent consistently each month?3. Is there a lease?4. Have you claimed the property as an investment property on your Tax Returns (Schedule E) for the past years?THis will determine if you are eligible for qualificaiton under an investment property or if you aren't, at least in so far as capturing the rent will alow for an off-set in your debt to income ratios to help you qualify. This, as long as the expneses for the property don't exceed the income fromit on a regular basis.Please let me know. this and then I might be of assistance. Best, Ron
Thanks for the feedback. I also should be clear that while I am in Maryland, the property is in Pennsylvania. While I do not have a lease, my sister and her husband have been paying all the expenses on the home for the last 6 years. I guess this process has caused me to be a little leery. We wanted to refinance the mortgage to ensure we had more control over it. It's been frustrating because, while I understand, nothing is 100% in terms of approval, the requirements I had to meet according to the lender just seemed to keep changing. At the end, we agreed to withdraw my application for now but even with some of the things he advised me to work on before reapplying, I am questioning. Right now, I am refinancing my car which will lower my monthly payments on that significantly (that i think will be helpful to me either way), but he also recommended I close a particular credit card -- yet when I asked him whether by closing the card will the lose of available credit hurt me, he backed off pushing for me to do that. I think that is really when I started questioning his advice and the fact that I am still unclear what I need to do to qualify.
Brian Allen (ballen)
#43 ranked lender in Maryland - 193 contributions
It seems there may be some options that I can discuss with you and knowing a little more would help you. I would want to know if sister and husband can qualified to refinance or purchase from estate we finance scores down to 600. Also, knowing what steps to take to improve your debt to income ratio and credit score is important. I'm local so call me 301-685-6676 or ballen@bankofengland1.com
Thanks. Getting a second opinion at this point I think is important. But, I think that is the tricky thing about this loan. Right now, only my sister and I have an ownership in the house. Bringing my brother-in-law in the mix is a concern of ours because I suspect he will expect an ownership interest if we asked him to sign on to a mortgage. That is why initially, I was skeptical about whether I'd qualify and as I said this lender seemed to lead me down a rabbit hole first saying one loan type will work and then saying the rules have changed so I need to try this other type and then saying I need to do XYZ to qualify for this other type of loan but then still not being clear exactly what all I need to do. I will try and call you today or tomorrow. Thanks.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Sounds like you've got a lot going on here.. First let me say that there have been no significant rule change on conforming loan products for several years that would apply to your scenario, so your lender might be talking about their own internal guidelines (Overlays), not conforming guidelines. And by closing a credit card, it will most likely lower your score, how much depends on many factors, but regardless, it will be lower. I would advise to just pay it off to help with your DTI ratio. This could also lower your score, but not as much as closing the card. Federal law does not require you to refinance a property that was inherited, so you could leave the existing loan in place. If there is a benefit to refinancing such as a lower payment or interest rate, then it's possible you might be able to do it.. Since the property is not rented out and you don't live in it, it's possible you could claim it as a 2nd home and the terms would be slightly lower than investment refinance. Some lenders might not be comfortable with this occupancy type, so they might require you to purchase it as investment.. (BTW.. Investment loans are also done using conventional financing). this all being said, if you talk to a local mortgage broker, you might have a better experience. Brokers have relationships with multiple lenders ( i work with 21), with each one offering a different menu of loan products. The broker is experienced in finding you the best loan product for your specific scenario, but typically, you don't get the same level of service with the local banks.. they usually don't have the proper training or experience to help borrowers with complex scenarios such as yours. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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