How can I try to make the closing happen?

8 Replies

I and my husband are buying our 3rd property(a quad-plex); its closing date was targeted on 9/27. We wanted to process the financing as primary residence due to its extensive rehab.

The title will be both of my name as well as my husband’s. Loan will be processed under his name.

However the underwriting company declined our loan application. Therefore, the only option we have was to proceed it as an investment property as the loan broker person advised. During the process, we were told there no gift money option – all money came from my husband’s account.

I have about 60% of down payment under our shared account, and my contribution of 60% is not acceptable. In order to do so my name also needs to be in the loan with my husband’s. My credit score is around 100pts lower than my husband’s.

For the 168,750 loan amount(purchasing price 225k, 25% down), here are what my options to proceed.

  • #1 both, 4.625%, 30 year Closing cost: $67k, payment 1357.66
    #2 both, 5.625% , 30 year closing cost: $65k, payment 1461
    #3 both, rate 4.5%, 15 year Closing cost: $65k, payment 1781
    #4 Husband only, 4.625%, 30 year Closing cost: $65k, payment 1357.66, but all account needs to come from his name. no gift money from me

I would like to go opt 4. The condition for opt#4 is to wait another 60 days. My husband has 401k acct covering my portion; I do not want to pay any surcharges or fees from withdrawing. I am willing to proceed getting a loan. We already used and have an outstanding loan used for purchasing our first property.

All covering down payment is in our shared account. Some checks in shared account but written to me were not acceptable according to the mortgage company. In order for me to proceed the loan to process here are what I think I have as options:

Opt 1: wait another 60 days and close the property
Opt 2: pay the outstanding loan (around 17k) and get another loan
Opt 3: to transfer the money from shared account to my husband’s account? Is there any way to proceed opt 4?

Originally posted by @Wayne Brooks :

@Grace Fukuda Why do you want to keep your name off the loan....DTI for future purchases in your name only?

Hi Wayne,

Yes I would like to keep me out of the purchase although the title is under my name too for the future purchases. I am just wondering if there is any possible options available.

 

Originally posted by @Theresa Harris :

If both of your names are on the loan, why does all the money have to come from his account?  I'd talk to another bank.

I may have said it confusingly. If my husband only is in the loan, all the money has to come from his account. But the money I deposited to my shared account a week ago, originally designated to my name. 

 

Originally posted by @Grace Fukuda :
Originally posted by @Theresa Harris:

If both of your names are on the loan, why does all the money have to come from his account?  I'd talk to another bank.

I may have said it confusingly. If my husband only is in the loan, all the money has to come from his account. But the money I deposited to my shared account a week ago, originally designated to my name. 

 

Thanks for clarifying that.  If he qualifies for the loan on his own, that makes the most sense.  Just make sure your wills are updated, so should something happen, you are covered.

 

Originally posted by @Theresa Harris :
Originally posted by @Grace Fukuda:
Originally posted by @Theresa Harris:

If both of your names are on the loan, why does all the money have to come from his account?  I'd talk to another bank.

I may have said it confusingly. If my husband only is in the loan, all the money has to come from his account. But the money I deposited to my shared account a week ago, originally designated to my name.  

Thanks for clarifying that.  If he qualifies for the loan on his own, that makes the most sense.  Just make sure your wills are updated, so should something happen, you are covered. 

Hi Theresa,

I never started making a will yet, how do I start off the investment property in this case? Do you have any recommendations?

 

Originally posted by @Grace Fukuda :
Originally posted by @Theresa Harris:
Originally posted by @Grace Fukuda:
Originally posted by @Theresa Harris:

If both of your names are on the loan, why does all the money have to come from his account?  I'd talk to another bank.

I may have said it confusingly. If my husband only is in the loan, all the money has to come from his account. But the money I deposited to my shared account a week ago, originally designated to my name.  

Thanks for clarifying that.  If he qualifies for the loan on his own, that makes the most sense.  Just make sure your wills are updated, so should something happen, you are covered. 

Hi Theresa,

I never started making a will yet, how do I start off the investment property in this case? Do you have any recommendations?

 

they are two separate things.  For the will, go to a lawyer and do a basic will.  In mine, I don't list specific property, I just state how I want the money divided.  If you are married, it would be something generic like all of my property, bank accounts, etc transfer to my husband upon my death.  Then have some condition; ie should you both die at the same time or if you get divorced.  If you get too detailed (house at 123 Main St to person A, house at 132 1st Street to person B), you need to change your will whenever you buy or sell a property.

 

...”financing as primary residence due to its extensive rehab.

The title will be both of my name as well as my husband’s. Loan will be processed under his name.

However the underwriting company declined our loan application. Therefore, the only option we have was to proceed it as an investment property as the loan broker person advised. During the process, we were told there no gift money option – all money came from my husband’s account”


 Are you and your husband buying the property to live in?