Mortgage Enquiry?

Question

Does anyone know if you have a partner living with you and you do not want a joint mortgage, will the mortgage lender take into account (when looking at your affordability calcualtor) the money they give you towards the upkeep of the house.

Answer 1

If you qualify for the loan alone, their income will not be considered. In fact, they do not have to be anywhere on the loan. Now, if you don't qualify alone, then you will need to add that person to qualify. Also, try using a stated program. If you have a 620 fico and above you can go stated in most cases. Which means the lender can fluff your income to make you qulify alone. Hope this helps.

STATED PROGRAMS ARE IN EFFECT TO HELP PEOPLE QUALIFY. WE DO THESE LOAN ALL DAY LONG. OFCOURSE THE INCOME HAS TO BE WITHIN REASON. I DIDNT SAY STATE THE INCOME OF A WAITER AT 8000 A MONTH. .. THESE PROGRAMS HELP PEOPLE THAT CAN NOT PROVE THERE INCOME. LIKE A IF YOU WHERE A FINANCIAL CONSULTANT OR A BARBER. JUST AN FYI.

DO NOT TELL THEM ITS AN INVESTEMENT! THOSE LOANS ARE MORE EXPENSIVE. RATE WISE and harder to QUALIFY FOR. FYI

Answer 2

I am a qualified mortgage and financial adviser and would recommend that you go and see a mortgage adviser in your area. There are lots that dont charge fees and will still do all the work for you. They are paid a fee by the lender for introducing the business but they are required to give best advice ( for you that is, not their own pocket). You can be confident that they will because the industry is very stringently regulated by the Financial Services Authority. An adviser has to give you an Initial Disclosure Document which tells you of their standard terms of engagement(ie whether they charge) and also the service you can expect. ALWAYS READ THIS CAREFULLY just incase the adviser has managed to retain your business but was vague about fees. Just ring a few and ask them specifically if they (not the lender they may/maynot recommend) charge a fee for either arranging the loan or advising you regarding a product. You have nothing to lose by going through a mortgage adviser and you have the added protection of having someone to sue if they are negligent in the performance of their duties. REMEMBER whether or not you pay them a fee they still work for you. Hope this helps.

Answer 3

I think you will struggle with this one as no mortgage company I deal with would include another person living in the house's income without being on the mortgage. If you go self cert so you don't have to prove your income you could get one but the interest rate will be higher. Please ask yourself why you do not want your partner on the mortgage. If you live in the UK go to an Independent Financial Adviser. I work for one and what you say to them is in complete confidence and only the information the mortgage company need will be passed to them. Also if you go down this route make sure they don't charge a fee. They should only take an admin fee from the lender.

Answer 4

I disagree with some of the people answering this question. It depends on the lender and the program, but Fannie Mae and some other lenders will allow income paid towards housing expenses (copied from Selling Guide for Fannie Mae):

Rental income from boarders in a one-family property that also is the borrower's primary residence or second home generally may not be considered as acceptable stable income. However, for a community lending mortgage, the rental payments that any borrower receives from a relative who resides with the borrower (but who is not obligated on the mortgage debt) may be considered as acceptable stable income—in an amount up to 30 percent of the total gross income that is used to qualify the borrower for the mortgage—if the relative has lived with (and paid rent to) the borrower for the last 12 months. Also for a community lending mortgage as well as for our standard mortgage, the rental income that a borrower with disabilities receives from a live-in personal assistant, whether or not that individual is a relative of the borrower, may be considered as acceptable stable income—in an amount up to 30 percent of the total gross income that is used to qualify the borrower for the mortgage. Personal assistants typically are paid by Medicaid Waiver Funds and include room and board, from which rental payments are made to the borrower. The boarder must provide appropriate documentation to demonstrate a history of shared residency (such as a copy of a driver's license, bill, bank statement, etc., that shows the boarder's address as being the same as the borrower's address) and the payment of rental payments for the last 12 months (such as a copy of his or her canceled checks).

They generally have to be a relative, though. You can add the person to the loan but you don't have to use their income if you can qualify on your own. Generally, the monthly debts you'll have after purchasing the home divided by your gross (before taxes) income must be less than 65%.

Answer 5

You might have to prove that money as income from your partner. Photo copy the checks he/she gives you or get a written statement from the person. Sometimes informal documentation has been accepted for mortgages that I have applied for. It means alot more paper work but its worth it. Also if you are both on the title of the home I dont think one person can rightly take a loan out without the others knowledge and consent and both names because if you default on a house jointly owned the other person will pay!

Answer 6

Depends on whether you can prove this income, most high street lenders will want to see a proof of income, a salary slip or a rental agreement.

Other lenders do a self certification mortgage where you do not have to prove your income, although the deals on offer may not be as good as a high street lender.

Answer 7

The FNMA (Fannie Mae) will not allow lenders to use "roommate" income to qualify a borrower for financing. "Fluffing" your income on a stated or no doc program, as suggested by a previous responder, is loan fraud. If the loan is audited and the lender finds that your income tax returns do not support the income you stated, they can foreclose.

There are many programs that will allow you to qualify on your own. Consult an experienced mortgage banker.

Answer 8

They won't take into account their income unless you have a joint mortgage, however some companies do take into account rental income. So you could tell them you will get £400 a month rental income (which your partner will pay), they will add that to your income and look at it when they work at your affordability.

Answer 9

Banks, building societies and mortgage lending companies all have different criteria and lending models. The best thing for you to do is speak to a qualified and practising financial adviser, preferably one who works for themselves (IE - does not work for a bank or building society!!!) and they will give you the advice you need.

Answer 10

In some instances, they can look at that now.

You could also try a no income verification loan... higher terms but it will get the job done.

Good luck!