Click To View Links

Mortgage assumption

I have been divorced and have been paying the mortgage for a year and a half now.

The deed of the home is in my name but my ex husband's name is still on the mortgage loan. I would like to remove his name and am concerned I would have hard time getting approved based on my sole proprietorship and fairly new company.

My credit scores are excellent.

What are my options?

Thanks,
AG.

=====ANSWERS=====

Hello AG,

Thank you for coming by my website and asking your question.

With excellent credit scores, 4-5 years ago you would have no problem at all getting your home refinanced.

However, since you're self employed (like I am) it is very hard these days to get a home loan.

Lenders want to see documentation of income. As a new business, you may not have as much income they want to see.

The "No Document" loan would have been an ideal loan product for you. Right now I do not know of any lenders out there that offer this any more.

However, if you do have income to show, FHA does work with self-employed borrowers. They normally use a DTI of 29/42. So 29% of your gross monthly income would go for the mortgage payment. This would have to include: PITI (principal, interest, taxes, insurance).

I wish I had better news for you. The only way to get your ex-husband off your mortgage is to refinance.

Best Regards,

Jeff

Click here to post comments

Return to Mortgage Questions.

Can I qualify for a mortgage loan?

by Niouvi
(Miami, Florida)

My husband bought a house 6 years ago but the house is in a foreclosure process, I do not have any link with the mortgage of the house but my name is in the property's title. We handle our finances separately and my credit score should be over 730.

My question is:

Can I get a home loan, or even qualify for the first time buyer programs?

=====ANSWERS=====

Hello Niouvi;

What a great question. Thanks for stopping by my website and asking this. I love helping people with their mortgage questions.

I'm happy to tell you that yes, you should be able to qualify for a first time home buyer loan.

There are a few things you need to consider before applying for a mortgage.

One of the best first time home buyer programs out there is the FHA home loan.

With this mortgage, you can buy a home using first time home buyer grants which can help you with your down payment.

Also it allows you to use seller concessions which can help with mortgage closing costs.

The only real thing to be concerned about in your situation is the DTI or Debt To Income ratio.

If you need your husbands income to qualify for the mortgage you may run into a problem. You will need to have enough income to afford the monthly payments for your house and all the other bills by yourself.

You need 29% of your gross monthly income for the house payment. So for example, if your monthly gross income is $3,000, then you can afford a $870 house payment which includes principal, interest, taxes and insurance.

Since your husband is in foreclosure, he will not be able to go on the mortgage with you. He will need a few years before that can happen again for him. I encourage him to take a look at my credit repair page for some ideas to recover.

So if you have the income to support the mortgage along with your other monthly bills, you should have no problem.

Kind Regards,

Jeff Ragan

Click here to post comments

Return to Mortgage Questions.

Recent Articles

  1. First Time Home Buyer Grants State Lists

    Nov 13, 19 09:36 AM

    Looking for first time home buyer grants state lists? Find the coolest list of agencies by state helping you locate down payment help for that first mortgage.

    Read More

  2. Buying a Home USDA vs FHA

    Oct 08, 19 08:33 AM

    Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved

    Read More

  3. Buying a home - worst case scenario - what to do?

    Aug 05, 19 10:44 PM

    Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans


Follow Us On Twitter

follow me on twitter