I have an interesting situation that I am dealing with right now. I have been working on building my referral data-base by reaching out to realtors in my local community. It has been a successful experience so far. I just got a referral yesterday from a realtor who I gave a referral last week. The referral that she sent me is a difficult one to get approved. Their is a borrower and a co-borrower. I could get them approved through Fannie's expanded approval guidelines based on their credit but they do not income qualify. The borrower said that her mom will co-sign for her. They have a 5% down payment. I did some research and I found out that Fannie Mae allows non-occupying co-borrowers up to 95% LTV on their standard products. Now I have placed a couple of phone calls with my clients parents but I have not heard back from them. I should note that after full review of their income and debts that I am confident that they can afford the monthly payment. They are only 2% above the DTI requirements and they are completely free of any other debt, so the only thing that they will be paying is their mortgage payment, tax insurance, PMI, and the other expenses that come along with owning a home like garbage removal, electricy, and food for the house.
I have never used a non-occupying co-borrower to approve one of my clients before. I will post the outcome here on AR. If anyone reading this has more information on this type of loan scenario I would like to hear about it.
Now my first referral from this realtor is a difficult one. The first deal that I did with her and the reason I reached out to her went very smooth. Their were DTI issues because my client had moved back to NY from Texas and there was a gap in her employment history that I had to obtain an explanation for.
Now, the realtor who sent this referral to me has a large chunk of the market share in an area that I am working to expand my business in. It is important to me to get these people qualified and closed.
37 Boynton Ave
(845) 243-5293 (Office)
(518) 565-0799 (Cell)