We've learned that each individual can secure up to 10 conventional loans with favorable interest rates. To maximize this opportunity, it is recommended to utilize the full allocation of 10 loans per person. As we proceed with the implementation, several questions arise regarding an investment property, where we intend to use the husband's name for the mortgage. Here are the questions:
1. Can the down payment be sourced from a joint checking account? Will the underwriter require the wife's involvement in the process?
2. We have a family trust, and we would like to use it on the title. Is this acceptable? If so, will the mortgage still be considered under the husband's name only?
3. In the future, if we decide to refinance the mortgage, is it possible to transition to a mortgage solely under the wife's name?
@Ryan Sun these are all questions for your lender to answer. So, I'll answer these questions below...but I'm not your lender. Not all lenders are the same...some may have an issue with these things. Likewise, are you sure a conventional loan is the right loan for you? A lender will answer that as well - at least, a good one will. The real question here is - how do I know which lenders will provide me the most flexibility? Which ones are "real estate investor friendly"? You can read the answer to that question on this post HERE.
1. Can the down payment be sourced from a joint checking account? Will the underwriter require the wife's involvement in the process? - A conventional loan should be fine with down payments coming from a joint account.
2. We have a family trust, and we would like to use it on the title. Is this acceptable? If so, will the mortgage still be considered under the husband's name only? - this one is a bit tricky. Your trust documents would need to be reviewed and approved by the lender ahead of time...and that doesn't guarantee acceptance. Usually, most of us will purchase the property in our personal name and then switch the title to our trust/llc after closing. But that's who OWNS the property. The individual who signed on the debt will always be responsible for the note, it will always be on their credit. The only way to remove someone from a debt obligation is to refinance. Also, if an individual is responsible for the debt but the trust claims the income...that might make qualifying for other loans problematic later. Just something to keep in mind.
3. In the future, if we decide to refinance the mortgage, is it possible to transition to a mortgage solely under the wife's name? - Yes, when you refinance the application you submit will have the person's name on it that will be responsible for the debt.