As mentioned in another thread, we accepted an offer for a coop on the Upper East Side. But here's the issue. I have great credit score (>800) while my wife's is not so stellar as she's still building her score. So the mortgage broker suggested that I only use my name on the mortgage application. However, the coop board requires a monthly debt to income ratio of no more than 30%. With both of... [more]
As mentioned in another thread, we accepted an offer for a coop on the Upper East Side. But here's the issue. I have great credit score (>800) while my wife's is not so stellar as she's still building her score. So the mortgage broker suggested that I only use my name on the mortgage application.
However, the coop board requires a monthly debt to income ratio of no more than 30%. With both of our combined income, the ratio is roughly 25%, which is more than good, I hope. But on the mortgage, my salary alone results in a debt to income ratio of around 36%.
The broker assures me that this is no problem, and that when the coop reviews our application, they will take into account that both of us are going to contribute to the monthly income. But I just want to make sure that this will indeed be OK?
Thanks!!!
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Response by notadmin
over 16 years ago
Posts: 3835
Member since: Jul 2008
maybe if they do have concerns they might ask you to put more $ down? that will lower the debt/income ratio too.
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Response by polydoa
over 16 years ago
Posts: 152
Member since: Feb 2009
in the monthly debt/income ratio of 30% that they require, is income gross or net take home (after taxes)?
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Response by nycbrokerdax
over 16 years ago
Posts: 180
Member since: Dec 2008
NYC Downtown, you should find out from the broker and the mortgage person if the bank involved or the coop could REQUIRE that all names on the proprietary lease be listed on the loan documents and vice versa, many a deal has fallen apart over the two not matching. As long as both are ok with having only you on the loan app but both on the lease then the Coop would normally consider the income of boh parties for computation purposes.
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Response by mjsalisb
over 16 years ago
Posts: 177
Member since: Sep 2006
that ratio is almost always calculated pretax (ie gross)
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9885
Member since: Mar 2009
I don't understand why you are planning on purchasing a Coop and your WIFE won't be on the stock and lease. I would imagine a lot of Coop Boards would be asking the same question. i would also imagine a bunch would think you guys plan on separating and her income is phantom to help you buy a place to move away from her to.
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Response by glamma
over 16 years ago
Posts: 830
Member since: Jun 2009
i believe if there are two purchasers one of you has to be the primary and that is the credit score they will largely consider
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Response by Dwayne_Pipe
over 16 years ago
Posts: 510
Member since: Jan 2009
does it consider bonus or just salary? A lot of people in finance get much of their income in something OTHER than recurring monthly salary.
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Response by NYCDowntown
over 16 years ago
Posts: 71
Member since: Jul 2009
Thanks for all the comments. It is GROSS of income taxes.
I checked with the broker almost 5 times already and she said even the president of the board said that it is fine for ME to get the mortgage in my name and use both salaries in the baord package. If possible, I definitely would like BOTH our names on the title/stock.
I am only doing this because my credit scorei s over 800 and my wife's is RIGHT UNDER 700. So using both of our names on the mortgage app will result in an interest rate of at least 0.75% higher.
Thanks and any other comments are welcome.
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Response by Dwayne_Pipe
over 16 years ago
Posts: 510
Member since: Jan 2009
"i believe if there are two purchasers one of you has to be the primary"
Then that would be the man before the divorce, but the wife after it...
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Response by NYCDowntown
over 16 years ago
Posts: 71
Member since: Jul 2009
hi dwayne - could you please elaborate? not sure what you mean by "man before the divorce..."
the broker should run the scenario by the managing agent and then advise.
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Response by NYCDowntown
over 16 years ago
Posts: 71
Member since: Jul 2009
she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!
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Response by yudimar
over 16 years ago
Posts: 43
Member since: Jun 2006
Buy a condo!
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Response by notadmin
over 16 years ago
Posts: 3835
Member since: Jul 2008
"she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!"
great!
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9885
Member since: Mar 2009
" 'she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!'
great!"
And everyone goes around screaming that there won't be any foreclosures in Coops because of how tough they are when it comes to fianacials...........
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Response by NWT
over 16 years ago
Posts: 6643
Member since: Sep 2008
... forgetting all of us who bought from sponsors.
maybe if they do have concerns they might ask you to put more $ down? that will lower the debt/income ratio too.
in the monthly debt/income ratio of 30% that they require, is income gross or net take home (after taxes)?
NYC Downtown, you should find out from the broker and the mortgage person if the bank involved or the coop could REQUIRE that all names on the proprietary lease be listed on the loan documents and vice versa, many a deal has fallen apart over the two not matching. As long as both are ok with having only you on the loan app but both on the lease then the Coop would normally consider the income of boh parties for computation purposes.
that ratio is almost always calculated pretax (ie gross)
I don't understand why you are planning on purchasing a Coop and your WIFE won't be on the stock and lease. I would imagine a lot of Coop Boards would be asking the same question. i would also imagine a bunch would think you guys plan on separating and her income is phantom to help you buy a place to move away from her to.
i believe if there are two purchasers one of you has to be the primary and that is the credit score they will largely consider
does it consider bonus or just salary? A lot of people in finance get much of their income in something OTHER than recurring monthly salary.
Thanks for all the comments. It is GROSS of income taxes.
I checked with the broker almost 5 times already and she said even the president of the board said that it is fine for ME to get the mortgage in my name and use both salaries in the baord package. If possible, I definitely would like BOTH our names on the title/stock.
I am only doing this because my credit scorei s over 800 and my wife's is RIGHT UNDER 700. So using both of our names on the mortgage app will result in an interest rate of at least 0.75% higher.
Thanks and any other comments are welcome.
"i believe if there are two purchasers one of you has to be the primary"
Then that would be the man before the divorce, but the wife after it...
hi dwayne - could you please elaborate? not sure what you mean by "man before the divorce..."
the broker should run the scenario by the managing agent and then advise.
she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!
Buy a condo!
"she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!"
great!
" 'she emailed me tonigth and said that the seller asked the board and they said they will definitely review both the couple's income even with only the husban on the mortgage app. so this is good!!'
great!"
And everyone goes around screaming that there won't be any foreclosures in Coops because of how tough they are when it comes to fianacials...........
... forgetting all of us who bought from sponsors.
Good point... that, too.