The other post made me wonder about our situation.
My husband and his mom are co-signed on their family home mortgage (for the last 25 years) where we currently live and there is a guest house that pays the mortgage. But now my husband and I are in escrow for a place of our own. In the other post it sounded like this situation could call the family mortgage due. Should we expect something like that to happen since my husband will actually have 2 primary properties showing on his credit? His mom still lives here and we can prove that she actually pays the mortgage. It will not be put on the market and though part of it is rented out, the bank doesn’t know that.
We’re getting a great rate on the new residence and the loan on the family house has a great rate too…The lender has not advised us that this could be a problem…could it!?
Thanks in advance.
When I went through this my lender had no issues with it. I’m sure others will argue this point. I just simply told my banker what was going on and he almost looked at me with a look of why I would feel the need to tell him. My two cents.
If you can prove that his mother makes the payment you should not have a problem. Typically they will ask for 6-12 months of cancelled checks from your mother’s account showing the payments have been made. I’m curious though are you using a local bank for this purchase or are you using a bank like Wells Fargo or Bank of America. Please advise.
Thanks for your responses. This is Wells Fargo. I shopped the loans and two lenders needed proof that his mom paid it but the other (who is doing the closing) hasn’t asked for it because of income properties we are closing with him right now too (3 back-to-back). It was more for income purposes without the investment properties being added in. Sounds like it will be probably okay in our situation.
By the way, Chris. We are set to close next week and I can let you know if something comes up with the bank about this.
Sunny,
I hope it goes well for you. I find that in most cases like this as long as you keep good records things will work themselves out. Where people run into trouble is when they pay cash to their family member or landlord and can’t document anything. That is when the lender starts asking all kinds of questions. Take care.