Wife's loan application rejected because she doesn't own primary residence?

4 Replies

Hello BP,

My wife an I ran into an interesting situation while trying to purchase our second out-of-state buy and hold property.

Currently, all loans have been taken out in my name. At the time of this deal, I had our primary residence in San Diego, 2 auto loans, and the mortgage for our first rental all counting against me for the DTI calculation.

My wife and I figured that we could put the second rental property in her name as she has no debt whatsoever.  However, when our mortgage lender tried to file her loan application, he came back saying that her loan was rejected because her name was never put on the title of our primary residence.

We've never heard of anything like this before and we know that other people have bought investment properties before ever owning their own personal residence.  Has anyone else encountered a similar problem?  We are considering going to the county office and adding her name to the deed but wanted to make sure we understood the problem first.

Some extra details that might affect what's happening:

- My wife is on a temporary greencard.  We were married this January ('14).

- My wife just recently switched to a full time job and only has about 4 months of full-time income earnings history.

We would really like to know what's going on so we can have access to my wife's credit for more deals.  Any help would be greatly appreciated.

PS, we ended up paying off a car loan and the second property is closing under my name for now, so no rush on making any changes.

Oh, and rental property we are trying to purchase is in Memphis, TN.

Her immigration and work status were probably the issue. Never heard of it mattering regarding the primary. The thing I found is you have to have 2 years of work experience. The not having American status ie not be an American citizen probably doesn't help.

she doesn't qualify bc of the green card and also with her job only being full time for a short amount of time. You usually need two years minimum on the job to qualify or two tax returns.  Point is she won't qualify with any lender and if your working with a turnkey provider they should have known this. 

Thanks for the fast reply guys!

Is the green card issue because she is on a temporary green card?  Would they be more willing to underwrite on a permanent green card once she has sufficient work history?

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