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I have Social Security Disability Income (SSDI), and it's not taxed. Right now my fiance (of 22 yrs ) isn't working--we just moved to NC, and he was on workers compensation until January of 2014 (not 2015). The income that can be used for us to qualify for a mortgage loan is my SSDI (which can be increased by 20%, since it's not taxed).
Re: assets--We hold our 2 checking accounts as Joint With Rights of Survivorship, as well as our car. He holds his truck and motorcycle in his name only. Debts, of which there is ONLY my student loan, are in our names separately. NO credit card balances at all.
We were pre-approved by a lender (he had me fill in info on a Uniform Residential Loan Application [URLA]--only the info needed to pull our credit & check assets/debts, etc. to pre-approve us), and we now have a house to buy, and a signed sales contract, which was sent to the lender.
I've told the lender for 2 months I want my fiance's name first on all documentation because when the bank prints out their 1098 forms each year, they'll pull the name of the first person on the loan, and send the info to that person. Since my husband will have taxable income once he starts working, I want him to be the primary borrower.
On the URLA it says at the very top:
"...Applicants should complete this form as 'Borrower' or 'Co-Borrower,' as applicable."
QUESTION: What does that mean, "as applicable"?
continuing:
"...Co-Borrower information must also be provided (and the appropriate box checked) when [right here there is a small box] the income or assets of a person other than the Borrower (including the Borrower's spouse) will be used as a basis for loan qualification..."
QUESTION: Does this mean I can make my fiance the Borrower, check that box, and make myself the Co-Borrower? So that my income is used for qualifying for the loan?
Lender keeps saying I MUST be first on the loan app, verbatum he wrote to me:
"At closing the attorney will ask how the 1098 mortgage interest form will be sent and that’s when you tell them who to put on that form. This is how it works when non-married people buy property; an investment purchase by siblings or something like that."
QUESTION: Is the Lender correct? Because I read one thing on the loan app, and the lender says something else.
He cannot be the borrow as he has no income. You are the borrow. The lender cannot and will not put him first. There is no way to as he has no income. In every situation, the person with the higher income is the borrower and the lower income is the co-borrower as that's the main person making the mortgage payments.
Borrower and co-borrower have the EXACT SAME RESPONSIBILITY on the loan!
He cannot be the borrow as he has no income. You are the borrow. The lender cannot and will not put him first. There is no way to as he has no income. In every situation, the person with the higher income is the borrower and the lower income is the co-borrower as that's the main person making the mortgage payments.
Borrower and co-borrower have the EXACT SAME RESPONSIBILITY on the loan!
I'm aware we both have the same responsibility on the loan, I didn't ask about that.
I'm reading the URLA right now and it states if someone's income other than the Borrower will be used to qualify for the loan, check the box, and that person is the Co-Borrower. It read's clearly to me that the Borrower may not be the person whose income is looked at to qualify for the loan, so I know it is possible to have a Borrower whose not the main income earner.
I need to ensure that my fiance receives the 1098 tax forms for mortgage interest paid and property taxes paid. I cannot seem to find anyone who can direct me where to find out exactly how the lender determines who to send the forms to, and from my personal experience, it's been based upon the first person (Borrower) on the loan application. It MUST be my fiance, because he will have taxable income, not me.
You don't need a lawyer to answer this. Your lender already told you it's not going to happen. Your fiance needs a job and then you can do it.
Excuse me? Why must you always answer with harsh criticisms?
You are one of the most unpleasant people I've interacted with on city-data. You haven't helped, or offered to help. You criticize and virtually shake your finger at me. You add no value to this thread. I'd like to deal with reasonable, mature adults if you don't mind.
I'm not listening to your pseudo "advice" that my fiance needs to get a job first. That was a veiled insult.
If we could wait, we would, but we cannot.
He cannot be the borrow as he has no income. You are the borrow. The lender cannot and will not put him first. There is no way to as he has no income. In every situation, the person with the higher income is the borrower and the lower income is the co-borrower as that's the main person making the mortgage payments.
Borrower and co-borrower have the EXACT SAME RESPONSIBILITY on the loan!
The lender CAN put my fiance first. You are a realtor, you are NOT a mortgage lender, so please stop writing as if you know everything about mortgages. This is outside your specialty of selling homes.
From FannieMae:
General Borrower Identity Criteria
A borrower is any applicant (e.g., individually or jointly) whose credit is used for qualifying purposes to determine ability to meet Fannie Mae’s underwriting and eligibility standards. “Co-borrower†is a term used to describe any borrower other than the first borrower whose name appears on the note.
He cannot be the borrow as he has no income. You are the borrow. The lender cannot and will not put him first. There is no way to as he has no income. In every situation, the person with the higher income is the borrower and the lower income is the co-borrower as that's the main person making the mortgage payments.
Borrower and co-borrower have the EXACT SAME RESPONSIBILITY on the loan!
I am a stay at home mom and have no income. I am listed as the Borrower on our mortgage and my husband (the primary and only source of income in our household) is the Co-borrower. I even asked the bank about it and was told it made no difference; that my name was simply first because I was the one who initiated contact and provided the information for the preapproval. So clearly not every situation.
I am a stay at home mom and have no income. I am listed as the Borrower on our mortgage and my husband (the primary and only source of income in our household) is the Co-borrower. I even asked the bank about it and was told it made no difference; that my name was simply first because I was the one who initiated contact and provided the information for the preapproval. So clearly not every situation.
Thank you so much for commenting! Repped!!
I'm so glad to see it CAN be done the way I want it done.
The only instances I am aware the fiance could not be listed first is to a VA loan, if you were the veteran, or, if you had a non-occupant co-borrower. Fannie, Freddie may not care, but every lender has their own overlays as to what the will allow, how their servicing is structured. So, be prepared for two different lenders to tell you two difference answers.
That said, the 1098 lists all parties on the 1098. The IRS will be the ones to calculate if his income supports the 1098 interest on his return. (And they DEFINITELY will audit someone that made $18K saying the paid $15K in interest. One of my customers tripped their filter and because the bank statements were joint, it was ruled unsupported.....be careful!)
I am a tad corncerned because there have been two rather benign issues that appear to have you somewhat stressed. Getting a mortgage loan today requires thick skin and the ability to hold your breath, to be able to count to ten and move forward in spite of what you were just told that you don't like.
In your case, it's going to be critical you find a lender and a Realtor to trust.
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) isn't working--we just moved to NC, and he was on workers compensation until January of 2014 (not 2015). The income that can be used for us to qualify for a mortgage loan is my SSDI (which can be increased by 20%, since it's not taxed).
