Divorce And Credit | NC FHA Expert

Single Parent Qualifying For A House In NC

April 12, 2012 By Eleanor Leave a Comment

There are several considerations when a single parent comes to us to discuss purchasing a home and their financing options… and with all of the “rack and ruin” in the Economy, it’s not surprising that we are talking to many people who want to purchase a house, and have a divorce in their background.

FHA is a great mortgage program for many single parents because of it’s flexibility. There are some qualifying details that are specific to Single Parents that you should consider, and please make SPECIAL NOTE of the Documentation we need:

Child Support and Alimony must be documented for the past 12 months. We will need to see cancelled checks, documented deposits in your account, or court records from the State showing that you’ve received at least 12 months of support in order to count it as a “stable” income source.
It must be continuing for at least 36 more months after closing. So if support will continue until your child is 18, and the child is 16 – we can not count that income.
You can get a gift for the down payment (With FHA that’s 3.5%, if you qualify for NC Housing you can get $8000 from the Government for your downpayment)
You need to have a credit score of 620
You can put a parent, or other family member on the loan to help you qualify (called a non occupying co-signor)
We can not count rent you might receive from a roommate

If you were obligated on a mortgage with your ex-spouse, and you were NOT removed from the mortgage, we will count that payment against you. Often times, an attorney will advise you to quick claim deed the property to your ex-spouse. This only takes you off of the DEED, if you were on the NOTE – you are still obligated for the mortgage. Your spouse would have to refinance and take you OFF of the note, or sell the property, to truly take that obligation off of you.

Court Recorded Seperation Agreements, stating that the other person is responsible for the debt, does NOT take the liability off of you.

If there’s a CAR payment, or another type of debt that you are still on the note for… and you can provide 12 months of cancelled checks showing where the other person is making the payments… we can SOMETIMES get that payment waived (in other words we might not have to count it as a debt when we are qualifying you).

For more information about Qualifying for a mortgage in NC, Call Steve and Eleanor Thorne, 919 649 5058 – we have the best rates, and we will take the time to help you come up with a game plan so that you can buy your next house!

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Filed Under: FHA Mortgage Loans Tagged With: Best mortgage rates, child support and alimony, divorce and credit, fha guidelines for single parents, single parent buying home

Divorce and Credit – What You Need To Know

April 10, 2012 By Eleanor Leave a Comment

With the hard economic times people are facing – I guess it’s not surprising that we are seeing many more people who want to purchase a home – but have a messy divorce in their recent history.

When you have a Dissolution of Marriage where one party says they will take responsibility for the account… that’s nice for the courts… but it doesn’t mean “didly-squat” (that’s right I said it!) when it comes to your credit report.

Just because someone SAYS they are going to take over the payments on a certain account does not MEAN that it will come off of your credit report! In Fact, unless you ACTUALLY have yourself removed from the account, you are still obligated for that debt.

Let’s think about that in terms of a mortgage. You Quick Deed property to the other spouse, and they agree to make payments. In NC – when you purchase a home, you sign a Deed of Trust AND a Note. The Quick Claim Deed takes care of only ONE part of the agreement – you must still be taken off of the Note, or you are STILL Legal Obligated for the Mortgage Loan. In order for THAT to happen – either the party who is keeping the home must pay the note off completely – or they must refinance the mortgage so that it is solely in their name.

If you are a single parent, who is looking for information on how you can purchase the next house, here’s some more information on FHA Guidelines for Single Parents.

If you are in this situation – call us! Steve Thorne 919-649-5058 We can help you buy a house, and counsel you on the steps you need to take to protect yourself.

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Filed Under: credit Tagged With: credit requirements fha loans, divorce and credit, fha guidelines for single parents, single parent mortgage programs

Chapel Hill Named One of the Best Places to Live for Singles

September 16, 2010 By Eleanor 1 Comment

Rounding out the Top 10 Best Places to Live if you are Rich and Single is Chapel Hill North Carolina! The list, put together by CNN Money this summer, focuses most of it’s attention on California – naming Newport Beach, Irvine, Milpitas (must admit I’m not familiar with that one), Sunyvale, Mountain View and Santa Clara tops for that STATE… six of the ten best places to live if you are Rich and Single are in California? Seriously?

And then there’s a couple in MA and one in Georgia… and then Chapel Hill. With a population of over 53,000 – a little over 50% of the residents are single! (who saw that one coming?)

Who doesn’t love a little southern charm? This college town has a lively nightlife, rowdy Tar Heel games and home-style cooking for singles of all ages to enjoy. Mingle with eligible bachelors and bachelorettes on bar-lined Franklin Street, or take a date to Crook’s Corner for some nationally-acclaimed grits and banana pudding. Cheering on your favorite U.N.C. team is also a surefire way to take the edge off a first date. And if you’re into music, find someone who will rock your world at nearby Cat’s Cradle, a small venue where local bands perform alongside big acts like The Counting Crows, John Mayer and Iggy Pop. –B.E.

The Triangle has also been listed as one of the Most Likely to see Real Estate Appreciation in the near future! Why is that? Because we have jobs, and all of the colleges and Universities around here help insulate us from recessions.

And… if you’re a single parent (and maybe not rich) we have tons of programs that will help you too! Click here for more details!

If you are considering a move to North Carolina, call Steve and Eleanor Thorne, 919-649-5058. We have the best mortgage rates available, and the lowest fees!

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Filed Under: Housing News Tagged With: Best mortgage rates, divorce and credit, housing market, lowest mortgage fees, single parent buying home, single parent mortgage loan program, steve thorne mortgage, steve thorne mortgage lender

Stated Income FHA Loans

July 14, 2008 By Eleanor 2 Comments

Can you just “state” your income at whatever you think would make it easier to qualify and get an FHA loan… no.

FHA requires documentation – and that might be why there’s no need for an FHA BAILOUT. In all seriousness, FHA is not a “publically” traded company like Bear Stearns or Fannie Mae or IndyMac – but still the point is that they have pretty strict guidelines.

Those guidelines state that if you want to borrow money that is insured by FHA – you need to document your income… and you will need enough income to qualify to make the payments on all of your obligations.

We’ve had at LEAST one borrower a week apply for a loan that was not legally seperated. This means they were still OBLIGATED on the note for the home they owned with their spouse – even though they are still living with that person.

They wanted to just “state” their income. That won’t work for an FHA loan. In NC you can no longer obtain a Stated Income loan. In other areas, you can still apply for a conventional loan with a SISA – you would need at least 25% down and a 720 credit score.

However, AGAIN – NC put the NC Predatory Lending Practices in place, and you can not get a stated income loan – it’s not that it’s no longer offered – it’s against the law.

If you have questions about purchasing a new home in Cary, NC- call Steve and Eleanor Thorne 919.649.5058