Is it possible to transfer your primary house into a trust so that it no longer shows up on your credit, thus allowing you to purchase a 2nd home, without having to worry about the debt to income ratio requirement?
I can afford payments on two houses, but I hear that lending requirements are tight, and it would put me over the 50% of income mark. Which in many cases, it’s a 33.3% income mark that cannot be exceeded?
Other than obviously earning more income to fit strict lending parameters, how can I purchase a 2nd house (that isn’t a super cheap run down fixer upper). I know that stated income loans are practically obsolete now. Wishing I would have done this back in the mid 2000s.
Unfortunately…
Unfortunately that won’t work…
Transferring title doesn’t change the
loan parameters…
the loan will still be in place secured
by the mortgage or deed of trust…
and will still show up on your credit till
paid off…
Re:
Yep I agree with the above post…you need a way to first pay off the loan on the first one and then think about buying one…
Here’s a corollary to that lesson…
If you buy a property with seller financing in your own name and apply for a loan, you will be obligated to report that debt, even though it won’t show up on your credit report. If you use a land trust (or any other entity) to take title and sign the loan documents to the seller, you don’t have to report it because it’s not your personal obligation (unless you gave a personal guarantee).