NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1513 topics, 14392 posts — Last Post 04/18/14, 05:39PM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10884 topics, 85588 posts — Last Post 04/18/14, 07:23PM

Real Estate Success Stories

395 topics, 6141 posts — Last Post 04/18/14, 07:18PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5935 topics, 46768 posts — Last Post 04/18/14, 05:24PM

Renters

642 topics, 5809 posts — Last Post 04/18/14, 05:52PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

655 topics, 6264 posts — Last Post 04/18/14, 04:19PM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3672 topics, 29443 posts — Last Post 04/18/14, 07:17PM

Real Estate Guru, Book & Course Reviews and Discussions

1133 topics, 11556 posts — Last Post 04/18/14, 03:01PM

Ask About A Real Estate Company

740 topics, 7318 posts — Last Post 04/18/14, 11:52AM

Real Estate Investing

Real Estate Strategies

Wholesaling

5602 topics, 43729 posts — Last Post 04/18/14, 07:19PM

Rehabbing and House Flipping

3332 topics, 30985 posts — Last Post 04/18/14, 07:11PM

Real Estate Development & New Home Construction

552 topics, 4682 posts — Last Post 04/18/14, 04:31PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6676 posts — Last Post 04/18/14, 05:56PM

Rent to Own a.k.a. Lease Purchase, Lease Options

691 topics, 4871 posts — Last Post 04/18/14, 03:32PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11285 posts — Last Post 04/18/14, 01:32PM

HUD, VA, and Tax Sales

414 topics, 3089 posts — Last Post 04/18/14, 12:05PM

REOs

1214 topics, 10570 posts — Last Post 04/17/14, 02:28PM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7202 topics, 70726 posts — Last Post 04/18/14, 05:55PM

Mobile Homes & Mobile Home Park Investing

638 topics, 5140 posts — Last Post 04/18/14, 03:22PM

Investor Basics

Starting Out

7697 topics, 60420 posts — Last Post 04/18/14, 07:14PM

Investor Psychology

431 topics, 6104 posts — Last Post 04/18/14, 06:08PM

General Real Estate Investing

4715 topics, 37175 posts — Last Post 04/18/14, 07:07PM

Real Estate Investor Marketing

1730 topics, 14092 posts — Last Post 04/18/14, 01:03PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1409 topics, 8983 posts — Last Post 04/17/14, 06:13PM

Multi-Family and Apartment Investing

1108 topics, 9217 posts — Last Post 04/18/14, 06:33PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

639 topics, 4885 posts — Last Post 04/18/14, 02:57PM

Business Basics

Goals, Business Plans & Entities

831 topics, 7562 posts — Last Post 04/18/14, 04:25PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2784 topics, 20000 posts — Last Post 04/18/14, 03:01PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2731 posts — Last Post 04/18/14, 04:33PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2832 topics, 19694 posts — Last Post 04/18/14, 06:48PM

Creative Real Estate Financing

1209 topics, 8767 posts — Last Post 04/18/14, 06:42PM

Crowdfunding Real Estate

35 topics, 461 posts — Last Post 04/18/14, 05:17PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1209 topics, 7980 posts — Last Post 04/18/14, 07:20PM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/18/14, 09:39AM

Contractors

267 topics, 1677 posts — Last Post 04/18/14, 01:58PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1988 topics, 11602 posts — Last Post 04/18/14, 04:54PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15013 topics, 53945 posts — Last Post 04/18/14, 07:00PM

Real Estate Events and Happenings

163 topics, 2498 posts — Last Post 04/18/14, 07:17PM

Off-Topic

Off Topic

Off-Topic

2905 topics, 32408 posts — Last Post 04/18/14, 05:31PM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Private & Conventional Lending Discussion » Can my wife buy her own home?

Can my wife buy her own home?

19 posts by 10 users

Signup

SFR Investor · Orange County, California


We're looking to add property to our portfolio. I currently can no longer qualify for any conventional financing due to DTI requirements, however, my wife is NOT on the title or note of any of our holdings. Therefore, there won't be any mortgages on her credit report.

Could she use her good salary and decent credit to purchase a home herself and leave me out of it? If I co-sign, will my excellent credit score help her or sink the whole deal since I have a large mortgage under my name? Will the lender be curious where she is currently living since she isn't renting, but isn't paying a mortgage either?

Thanks.



Real Estate Investor · Amarillo, Texas


Why cant she claim she is renting, if shes living with you, you might not directly charge her rent, but im sure she helps out in some way, and you could claim this as her "rent" I dont believe they ask for leases or anything like that. She would just have to qualify for the property based on her income and DTI.
I would NOT suggest putting youself on the property. Im currently doing this as we speak.. so far so good...



Real Estate Investor · Chattanooga, Tennessee


My wife and I started to go down this road as well. If memory serves correct, your wife will have to be able to carry your rent/mortgage on your primary entirely on her own in addition to the additional debt load of the new property. In our case we did have to provide copies of our leases/mortgage for our primary to demonstrate what that amount was in addition to any other debt that would show up on the credit report. If you want to cosign the lender will probably want to look at your credit profile as well. If they see your DTI is too high, you most likely won't be allowed to cosign.



Real Estate Investor · Studio City, California


That is a great topic. I'd be interested to know as well. My FICO is great but no way I can qualify because of my DTI as well. I'd like my wife to eventually buy a house when she is up to speed on her income (She just finished nursing school :mrgreen: ).



Real Estate Investor · Charlotte, North Carolina


brian, if the lady gives you trouble, you can you evict her??


Bryan A., A Helping Hand Property Solutions, LLC
E-Mail: [email protected]
Telephone: 704-215-4687


Real Estate Investor · sioux falls, South Dakota


My wife just qualified for her first property on her own, a rental. It is to help her increase her ficos. Rich



Banker · Tampa Area, Florida


some great points have been made...i'm going to elaborate a little more...

your wife will need to qualify solely alone based off her income and her credit.

your great credit score will no way help her since it also comes with a high dti...you cannot/should not/will not be on app.

the lender may ask what her current mortgage payment is (this would show on her credit report), what her rent payment is (this wouldn't), or what her living situation is (ie, lives with parents rent-free). this is to factor in a debt ratio seeing that i take it this loan isnt for her to occupy.



SFR Investor · Orange County, California


Originally posted by Josh Green:
the lender may ask what her current mortgage payment is (this would show on her credit report), what her rent payment is (this wouldn't), or what her living situation is (ie, lives with parents rent-free). this is to factor in a debt ratio seeing that i take it this loan isnt for her to occupy.

Thanks Josh. My wife doesn't have a mortgage payment since I bought the house myself before we were married. She's not exactly renting or living with parents, she's living with me. Can she just tell the lender her husband is paying the mortgage or are they going to stick their nose into that business? Thanks again.



Real Estate Investor · Studio City, California


OK, So I would add some other questions. What if my wife is a partner with me in two of my LLCs. Those LLCs own properties but I am the only one on the mortgage. (Properties were moved to the LLCs after purchase). How that effects her ability to qualify?

What about California's Community Property laws? Since my wife is entitled to 50% of my property, isn't she also liable to any debt attached to this property whether she is on the mortgage or not?

If I solely the responsible party of the mortgage on my own residence as well as rental properties, can she buy a property as "2nd home" rather than "investment property"? I'm aware of the fact that she cannot rent it, but she may decide to have a family member living in it.



Real Estate Investor · Charlotte, North Carolina


eddie, i would think as far as the banks are concerned, that your wife is not involved with those properties in your llc, unless you for some reason give them a copy of the operating agreement. otherwise, the bank will see that you are on the hook for them and not her. anyone else???


Bryan A., A Helping Hand Property Solutions, LLC
E-Mail: [email protected]
Telephone: 704-215-4687


SFR Investor · Orange County, California


Originally posted by Eddie Ziv:
What about California's Community Property laws? Since my wife is entitled to 50% of my property, isn't she also liable to any debt attached to this property whether she is on the mortgage or not?

Ah, good point!

I think we'll just go check with my credit union and see if and what she pre-qual's for. If this works, I'll let all of you know.



SFR Investor · Orange County, California


Sorry, I never updated.

Our credit union turned out to be a real pain in the chops when my wife applied for a mortgage on her own without me as a co-borrower. Just so you know, our credit union is VERY conservative and regards investment property as favorably as a Southern Baptist views Las Vegas. They wanted to know things like WHERE we got our savings from - Ummm, from SAVING our money, DUH!!! So we abandoned our application with them and started looking at other avenues.

We discovered VA foreclosures and my wife just got approval last week on a house we found in a nearby county. We were supposed to close tomorrow, but the VA hasn't got their paperwork in order and we will have to extend closing into next week. Anyways, the approval process was still pretty involved requiring several "letters of explanation", but we got'er done. Basically we had to provide:

1) A statement that our primary residence was "in husband's name only"
2) A letter from me granting my wife access to all joint funds for this purchase
3) A letter explaining several deposits into our joint checking account that were NOT my wife's Direct Deposit paycheck were MY deposits
4) A form stating what my wife was paying for child care since she is a "working" mom (the answer was zero since I watch our daughter when my wife is at work)
5) All the other standard lender stuff like bank statements, pay stubs, etc.

I hope this sheds a little light on some of the underwriting requirements when one half of a married unit applies for a mortgage on their own. Of course, a great deal depends on the lender, but this was how our ordeal went down. Good luck to everyone.



Real Estate Investor · Garland, Texas


#4 sounds sexist and discriminatory. I've never been asked what I pay for child care on a mortgage application or in the process.


Jon Klaus, SellPropertyFast
E-Mail: [email protected]
Telephone: 214-929-6545
Website: http://www.facebook.com/Buttermilks


Real Estate Investor · Charlotte, North Carolina


gladyou got it worked out mitch....btw, i think it's awesome that your wife is as intersted in rentals as you are...did it take her awhile to come around?


Bryan A., A Helping Hand Property Solutions, LLC
E-Mail: [email protected]
Telephone: 704-215-4687


SFR Investor · Orange County, California


Originally posted by BryanA:
i think it's awesome that your wife is as intersted in rentals as you are...did it take her awhile to come around?

Bryan, that could be an entire thread of its own!

When I met my wife, I already owned a house and had been renting out my condo for years. She had broken up with her boyfriend and his house was shortly foreclosed on, leaving her to rent a room in a co-worker's house.

By the time we were seriously involved and she moved in with me, she expressed interest in buying some investment real estate since she was making good money as a registered nurse and most of it was simply going into the bank earning 1%. At the time, 2006-07, things were still pretty expensive, so I told her we should wait.

Then the bubble burst, prices plummeted, and we had a nice little nest egg saved up for investing. I told her now is the time to snatch up real estate. So we bought a house in Murrieta, CA in 2009 and are currently very close to closing on another in Moreno Valley. I hope to buy one more in 2011.

Her emotions run the gamut from apprehension, fear, and buyer's remorse, to excitement, curiosity, and optimism. Usually, she only expresses her negative feelings to me, probably so I can comfort and assure her we're doing the right thing. However, when others (friends, co-workers, etc.) criticize her for investing in real estate, she turns into a tiger and defends our actions.

Back in 2009, our daughter's Godmother told my wife, "Why are you blowing your money on a rental house? You should spend your money at the mall and help out the economy." My wife quickly replied, "Why should I fix the economy? I didn't screw it up!" :mrgreen:

So altogether, I think she believes deep down real estate investing is the way to go, but she needs me to sway her fears aside from time to time as they surface. One day she'll tell me, "We are NOT buying any more houses after this one!" and the next day at work, she'll tell a doctor, "You should buy real estate! What's all your money earning you in the bank?"

That's my girl. :wink:



SFR Investor · Orange County, California


Originally posted by Jon Klaus:
#4 sounds sexist and discriminatory. I've never been asked what I pay for child care on a mortgage application or in the process.

It certainly took me by surprise as well. I've never seen anything like it before, but it's something the VA requires. Below is a cut & paste of the form they sent us:

The following information is required by the Veterans Administration and will accompany your application for loan approval.

As employed parents of minor children, I/we certify that the following information concerning child care expenses is true and correct.

My/Our Children are cared for by _______________________

Whose address is _______________________

Telephone number ________________________

The cost of this care is $_______ per week $_______per month

The joys of dealing with a government agency.



Real Estate Investor · Fort Myers, Florida


Hi Mitch,

Which bank provided you the financing on this property? And did you use a mortgage broker or not?

Thanks



SFR Investor · San Ramon CA/Spring Texas, California


With my situation we are in California I am retired so I have no income other than investments but my wife makes over 100K from her job so we have been putting the rental homes in her name so she gets the tax breaks. It has been working out nicely, eventually she will no longer have to pay taxes on her work income by offsetting it with the deductions from the homes.



SFR Investor · Orange County, California


Originally posted by Arun Iyer:
Which bank provided you the financing on this property? And did you use a mortgage broker or not?

This was a VA REO offerred through their Vendee Program, so it was basically "seller" financed by the VA. There wasn't any mortgage broker involved, but the "loan" officer, processing, and servicing were all provided by the morons at BofA.





Sign up