Qualifying for a loan - Posted by Ricky

Real Estate Investing
1

Posted by GL on July 21, 2000 at 11:36:01:

Best to ask the bank involved.If she has a steady job, and pays her bills regularly (especially the MH payment LOL) it should be no problem.

2

Qualifying for a loan - Posted by Ricky

Posted by Ricky on July 21, 2000 at 07:45:07:

A friend of the family who has A+ credit aquired a loan for her daughter for the purchase of a new mobile home. She asked me is there any way to have her daughter assume that loan so that she will be free to qualify and purchase a home that I intend to sell to her? I haven’t seen the loan papers but I’m suspect it is non-assumable. Thanks in advance.

3

Re: Qualifying for a loan - Posted by Ed Garcia

Posted by Ed Garcia on July 22, 2000 at 09:52:04:

Ricky,

Your question would depend on, if the loan is assumable, and if the daughter would qualify. It seems to me that if the daughter would qualify, the parents wouldn’t have had to finance the mobile home in their name to begin with. You don’t give us how much time has passed since the mobile home was purchased.

For the moment, lets assume that the loan on the mobile home cannot be assumed. You have 3 options.

  1. You can collect all the canceled checks that were paid by the daughter, to show your lender on the new home, that the daughter is making the payments. Most lenders will take it into consideration and give credit when figuring the debt to income ratios.

  2. You can get a rental agreement between the parents and the daughter to show the daughter has rented the mobile home from the parents.

  3. You can create a sale between the parents and the daughter to show the parents are selling the mobile home to the daughter.

Actually there are more than 3 options, but I think one of these 3 will do the job.

Ed Garcia