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Who has been making the mortgage payment? If there's a joint account and there's proof that the other joint owner has made payments for 12 months, that debt can be excluded from the other joint owner's DTI. Your rental idea could also work. You would need a lease and deposit or proof of first rental payment. Don't take cash payments for rent. Either check or bank transfer. Also, the income from rent is counted at 75%, so if your payments and rent are $2,000, you'll get $1500 from the rent to offset the debt. Talk to a loan officer. It sounds like there are ways this could be worked out for you.
Who has been making the mortgage payment? If there's a joint account and there's proof that the other joint owner has made payments for 12 months, that debt can be excluded from the other joint owner's DTI. Your rental idea could also work. You would need a lease and deposit or proof of first rental payment. Don't take cash payments for rent. Either check or bank transfer. Also, the income from rent is counted at 75%, so if your payments and rent are $2,000, you'll get $1500 from the rent to offset the debt. Talk to a loan officer. It sounds like there are ways this could be worked out for you.
They've been making them the past few months, before that I was in the house and so I was making them. So I think I'll have to wait until they've been making the payments for like 12 months. This post is super helpful and I'll talk to a loan officer. I had no idea about the 75% so that's good to know. The proof of the other joint owner making payments seems like a better solution because of that. Thanks so much!!
They've been making them the past few months, before that I was in the house and so I was making them. So I think I'll have to wait until they've been making the payments for like 12 months. This post is super helpful and I'll talk to a loan officer. I had no idea about the 75% so that's good to know. The proof of the other joint owner making payments seems like a better solution because of that. Thanks so much!!
Just be aware that if your ex and partner walk away from, or otherwise stop making the payments on, that house, you will be on the hook for the remaining debt and your credit will be badly dinged for their failure to pay.
Regarding DTI ratio reduction, it is my understanding that rental agreement with at least 1 year lease will help. You'll need legal rental documentation. The problem however is that the house will have to be rental property so home insurance needs to change. So the paperwork is not as simple.
Also, rent paid by crypto mining is suspect. As a landlord, you shouldn't approve a renter if only income they can provide is thru crypto mining. It won't last. And this is coming from someone who is bullish on crypto.
Yeah...that is definitely a fair question. I thought about that and that is the sound recommendation...I just have a hard time with that because it's the kids' home. Financially, that definitely does make the most sense and releases me from all that risk. That would definitely release me from the issue I'm having plus give me my share of the equity that I can use as a down payment for my condo.
Basically how they generate income is through cryptocurrency. They mine it and do something called Defi (not sure if I am getting that completely right). I don't know a ton about it to be honest, just that they get regular income for it but isn't like "documentable" and regular income like from a job or child support that can be used on mortgage applications.
That's the main reason I threw the part in about how they've been regularly paying...I'm not quite sure how it all gets generated, just that it appears somehow? lol
Loanchic gave great advice on how it could possibly be set up, but I still need to side with the posters that are discouraging this arrangement. This is so risky for you and your future to stay tied to your ex and the property.
Don't romanticize the house because it's the kids' home. It's just a house, there are other houses. I assume half the time they will be at your house.
Divorce changes people. One wrong move on your part (they don't like your new girlfriend, you don't pay extra for something she wants for the kids) and all your nice plans could go down the drain.
Best of luck to you.
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