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Mortgage with 3 different employeed residents.

I have my family (wife, son and myself) who are in the process of moving out of a rental and into a home. We found a nice piece of property worth 350k, and we can put a down payment of 10-12% on the property. Now we have three employed residents, myself (credit of 805), wife (credit of 810), and son (credit of 780) who make a combined take home of 140k a year. Now if my son, who is planning on living with us until a year or two longer, were to sign onto the mortgage and did a quitclaim when he moved out, would it be better? Or should I stick with my wife and I be the signers and keep my son out of it. I'm looking for the best possible deal, but I do not want to commit my son to a mortgage. Any ideas? by carter_614_445 from Tacoma, Washington. Nov 28th 2011 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

if you and your wife have enough income to support the new mortgage, your better off applying as husband and wife without the son.. The only reason you would want your son on the mortgage if you needed his income to qualify.. It would also make it easier for your son to purchase his own home when he does move out.. WilliamAcres.com

Nov 28th 2011
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Marcus Buchanan (mbuchanan)
#309 ranked lender in California - 28 contributions

If you can qualify without your son which it sounds like you can then there would be no reason to have him on it. Less paperwork and hassle.

Nov 28th 2011
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Walt Terry (ARMortgage)
#6 ranked lender in Arkansas - 11 contributions

Doesnt really sound like you need your sons income. Jsut do the loan in your and your wifes name.

Nov 28th 2011
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Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

I agree with the answers provided but here is the real reason you would want to keep your son off the loan. As a first time home buyer, there are special programs that require little to no money down. If your son signs on this loan, it may disqualify him for those programs. Something to think about. Ron Pippin

Nov 28th 2011
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Paul McFadden (paul.mcfaddenmortgages@gmail.com)
#42 ranked lender in Washington - 45 contributions

If you and your wife can qualify without your son that would be best. It looks like this has already been answered. I'm happy to help and am local if that matters to you. Feel free to contact me if I can be of further assistance. Good luck with your purchase!Paul

Nov 28th 2011
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Wendy St Julien (Wendy@stjulienhomeloans.com)
#19 ranked lender in Washington - 9 contributions

In answer to your last question regarding the quit claim. Taking him off of the title will create a "taxable event". I believe at that time you would need to pay excise tax on the remaining balance. Please check this out as it could result in an additional expense I am sure you were not expecting, probably in the neighborhood of $6000.00.

Nov 28th 2011
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,827 contributions

There are really only a couple of reasons you would want to enter into the transaction with your son on the note and title. You do not qualify without his income; Having him on title is an intregal part of your estate planning and /or it is your intent for him to remain in the home down theroad and he wants to be able to keep the great financing in place and not have to payoff the lender upon transfer of title. The potential problems you est yourself up for are many. If your son loses a lawsuit, you could be forced to sell your home to release his equity to satisfy the judgement. If he moves out and wants to buy a home of his own, the new lender is going to count the mortgage payment on your home as part of his debt, possibly denying him the chance. If he quit claims his equity to you, he may be subject to gift taxes or other tax liabilities. I would recommend that you contact a local mortgage Banker/Broker and figure out if you and your wife qualify without your son. If you can, this would be the route I would recommend.

Nov 28th 2011
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