West Haven, CT · Member since 2019 · 24 posts · 13 votes
Hey guys I'm not sure how to handle this situation. Monday I'm closing on my first rental property. I'll be profiting $1000 each month after expenses. I'm super excited. The problem comes with the rental property my spouse is buying. We just had the appraisal done and our loan officer is telling us she doesnt qualify for the house due to her vehicle lease. Why is this coming up now? (Maybe because the loan application was submitted and the underwriters brought up the issue) we already did the inspection and appraisal so that will be money lost. The only option we have to make the deal go through is to turn in the car and pay the remaining payments plus lease termination fee. This is not an option for her.
I dont want to blame anyone I just want to correct the issue and get the deal done.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
Happens all the time.....your loan officer does a sloppy job, or You don't supply All relevant info....in the end when reality surfaces, you get denied. There is no saving it now, if her DTI is too high. On the other hand......Is the loan officer counting the expected rental income?
West Haven, CT · Member since 2019 · 24 posts · 13 votes
6y
Update: we closed on both of our properties and ended up with a little equity for each of them as well. Our loan officer notified us that we wouldn't have to worry about the lease if we went FHA, which I dont know why this wasn't suggested earlier instead of putting us through all of this. The only difference between the original loan and fha is a little less down payment and now we have PMI. The numbers still work with the increase so we ended up going with it and the deal got done.
Thanks everyone for all the suggestions and help! I appreciate it.
@Lynnette E. I'm sorry but everything you said is based off assumptions.
1. Even though you can prepay the remaining payments and keep the car you are still in the lease obligation. You have to turn in the car and pay the lease termination fee. I called the leasing company and confirmed this.
2. Maybe she had other motives to have a co-signer. It certainly is possible for her Financial situation to change in 2-3 years. Which it has for the both of us. Hard work pays off.
3. We've never shared a permanent residence in our long term relationship. We have a plan that in 2021 we will buy one together. Everybody is different.
I think these aren't just guesses. That's often the case. For this reason and you have to do a very good analysis and take care of the choice you will tak
I think these aren't just guesses. That's often the case. For this reason and you have to do a very good analysis and take care of the choice you will tak