I had a chat with a mortgage broker today, about one of my buyers. He will have a hard time to get them qualified to buy. They only earn $285,000 yearly gross and have only $60,000 in saving. Fortunately, since the home they have an eye on is listed at $160,000, there is still a small chance they can buy it. Here are the interesting datas:
They are married and filed their tax return jointly.
He earns $25,000/year and has a credit score of about 720, with no red spot, pays his 3 credit cards on time and his car's loan as well.
She earns $260,000/year as a successful internet entrepreneur and has no credit history, no debt, no credit card and a FICO of 450, no red spot, no nothing in there actually.
She has the $60,000 for a down payment in a bank account for several month on her name only.
They are looking to put a 10% as down payment.
Here are the scenarios now:
If they are going to purchase the property jointly with both of them on the deed and on the note, the average FICO score from the LOWEST number will be used, and most likely they won't be qualified.
If they are going to purchase the property on his name, with a better score and history, the payment is way above the 40%ish debt to income ratio necessary, and most likely, they won't be qualified.
Also, she will have to give him the down payment from her account as a gift. She's paying, but she's nowhere on the deed or on the note.
I'll have more info by tomorrow though, and maybe they'll get a green light, hopefully.
But there is a way to be more than comfortable financially and unable to buy anything...
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