Posted by Ed Garcia on February 03, 2002 at 11:57:58:
I think, that no matter which way you go, it should be in the wife’s name.
Even though you’ve tried to give me the information you thought I would need. I need more info. She has 3 other properties, but I don’t know the equity position. They may the way to go, on the other hand she may be leveraged out. The house she is buying is 20k but needs another 10k for fix-up, so that tells me that it won’t show pride of ownership, which is important to a lender. They like to see a nice house for the obvious reason; it’s their collateral.
A mortgage company would be the likely choice because they would have no problem with the income. They could do a Stated income, NIQ (None Income Qualifier) etc, however they will have a problem with the deal for two reasons, 1. Low loan amount, under 40k. 2. The condition of the property.
Her credit allows her to qualify with a bank, which could even give her the money to do the repairs, however they don’t have a program that don’t verify income.
There are two things that pop into my mind right now. 1. Is CREDIT CARDS. 2. Find a local portfolio lender.
For you to take out the equity on the house you’re purchasing would require 1 year seasoning. In most cases on a NOO the lender would lend 80% of appraised value, which based on a value of 50k, would be 35k. After paying off the 30k you would have just enough for a refi.
Like I said Dave, we need more info, this is just looking at the deal at a glance.