11 answers

Need a Real Estate Loan to Buy a House. HELP!

Hi, we are having trouble getting a real estate loan to buy a house. This is our first house and let me preface by saying that the reason we are having a problem getting a loan is that my husband has his mom's trailer under his name and she made a late mortgage payment. Our loan officer said bc of this and the fact that he essentially already has a mortgage under his name (although his mom is responsible for those payments), two of the banks he tried will not give us a loan. His mother is still living in the trailer and there is nowhere else for her to go (she lives in St. Louis). Of course I want to sell the trailer so we cut financial ties to her, but if she can't afford a $350 mortgage payment on a trailer, how can she afford an apt cheaper than that? We were hoping to buy this house and move the first week of October and don't know what to do. Should we try another loan officer who will try harder for us to get a loan? I don't want to give up, but don't know what to do. We are in a catch 22.

What can I do next?

So What Happened?™

We were able to go through Cornerstone and get a loan. We are paying a little bit more (7.25%), but the good news is we are able to get into that house! I am so relieved and appreciate everyone's advice.

Featured Answers

T...my best friend and neighbors both work for mortgage companies. Right now is not a good time to get a mortgage unless you have pretty good credit. My neighbor works for I think she called it subprime, meaning they finance anyone they can with not so good credit and they are not taking any risks on anyone with not great credit at the present moment.

I have a friend that had 1 late payment on their mortgage 2 yrs ago and they have an ARM right now and cannot refinance b/c of that also.

Just based on what you said, and based on what my neighbors said, it doesnt look promising to get a loan from anyone right now. Too many loan companies are closing up shop, another neighbor worked for capital ones mortgage division and was just given a last day of unemplyment as 9/21, capital one is closing that branch of mortgaging.

Best of luck to you. Sorry I didnt get better news for you.

K.
www.arkparties.com

More Answers

Hi T.,

I work in a Bank, I can maybe help you. There is other options for you and your husband. I know that the BC market is limited to options right know but there is other better programs out there with better and lower Interest Rate's, specially for first time homebuyer's. Please feel free to email me so we can discuss this futher at ____@____.com thanks.

Hi T.,

It may be easier to get a home loan if your mother-in-law signs a lease on the trailer. We currently have properties (rentals) and have had no problem getting loans. What we needed to do was provide lease agreements of all the properties to show that money is coming in from them and that the mortgages were being paid by others living in the home. I do have a mortgage person if you are interested, just give me a quick email and I will send you her information. Another thing you can do is put the trailer up for sale and have your mil sign a lease so the prospective buyers can not make her leave until the end of the lease. You can create a lease for as long as you want to. Anyway there are some ideas for you and your husband to think about. If you have any questions you think I might be able to answer my email is ____@____.com Luck:)

You used to be able to show that she is making the payments on the mortgage via bank statements. You typically need 2 yrs bank statements. You can also send the bank statements to TRW and Equifax, the credit agencies, to clear your credit. It probably won't rescore your credit right away (to get a better interest rate). You should try looking into a mortgage bank, not a regular bank, for your loan. The Loan Officers at a mortgage bank (not a brokerage!!), try much harder, and the loan is backed the that bank -- a mortgage bank means they draw on their own line of credit, and therefore work hard to make sure everything works in your favor, becuase then it works in their favor! A broker will usually work as an agent for a bunch of different banks and has no real responsibility other than collecting your documents and sending them to whatever bank he uses, then charges you a "yield spread premium" which is his cut on the mortgage (usally a point or two), plus he makes a kickback from the bank, which is also a pretty hefty sum. Whatever the case may be, a mortgage bank is, to me, a more secure loan for you. I used to be a mortgage banker (go figure, har) about 2.5 yrs has passed since closing my last couple of loans and i'm not sure w/ how the markets have been faring, how the loan structure has changed, so maybe the banks are not willing to lend to anyone w/ a late mortgage payment (they usually are willing to, if it's just once or twice, by charging you an extra half point interest), if more than 2 tho, it just looks like too big a risk. If the trailer loan is in your hub's name, it would just be a "second home" or you can show that your mother pays via the bankstatements or you can even call it rental income. The banks you've been going to are not helping you. I wonder if there are other things on your credit that are holding you back. If the income is there, and you have pretty clean credit, you should be able to borrow so long as you aren't exceeding a certain percentage of your income on housing (think it's up to 44%, depending on how much credit card debt is outstanding besides the house payments). I'd get mom-in-law to collect those bank statements for the last 2 yrs so you can bring those to your next appointment, and contact Trans Union to ge ta copy of your credit to see what's on it. Maybe one of the banks you worked w/ can send you a copy (they might charge you tho, banks are always charging for something :).

Good luck! Let me know if you have any more questions. I don't do the job anymore, but can still answer and help. N

T...my best friend and neighbors both work for mortgage companies. Right now is not a good time to get a mortgage unless you have pretty good credit. My neighbor works for I think she called it subprime, meaning they finance anyone they can with not so good credit and they are not taking any risks on anyone with not great credit at the present moment.

I have a friend that had 1 late payment on their mortgage 2 yrs ago and they have an ARM right now and cannot refinance b/c of that also.

Just based on what you said, and based on what my neighbors said, it doesnt look promising to get a loan from anyone right now. Too many loan companies are closing up shop, another neighbor worked for capital ones mortgage division and was just given a last day of unemplyment as 9/21, capital one is closing that branch of mortgaging.

Best of luck to you. Sorry I didnt get better news for you.

K.
www.arkparties.com

Can you put the trailer and loan in someone else's hands you trust with all your heart? Like a relative? Of course, they would have to buy the trailer from your husband. That is a tough situation your in. I guess you are kinda stuck unless you have a lot of money for another purchase.
I know of others who have multiple homes, for like rentals and such. Good luck to you.

T.-

From what I can remember from my underwriting days... As long as his mom has proof that she is paying the mortgage (I believe you need to provide the cancelled checks- 6 months to a year) than that took the burden off of the potential buyer-

Good Luck

Hello,
Sorry for your trouble. I have a mortgage broker/friend who specializes in non-conforming (people w/less than perfect credit) mortgage loans and I have referred several family members to them and he was always able to at the very least, give them honest advice. His name is Michael Fine and his office number is 773/792-0600

You should try a broker instead of a bank- brokers work with many different lenders. Be aware though that the broker gets paid more based on how much the bank makes, so you may want to try to negotiate rates.

Some lenders, HFC (Household) and Beneficial specialize in loans for people whose credit is not perfect (not saying yours is bad but it is taking a hit due to already having a mortgage). You could also try them. Good luck.

Editing to add that remember each time someone pulls your credit report it is a hit on your credit so be cautious about having too many hits.

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