Re: Is It True...Re: Getting a Mortgage

Re: Is It True...Re: Getting a Mortgage

retirement accounts are factored in as money in the bank btw. I have two roth's and was counted as savings. I didn't have my state retirement yet but I do now but don't factor that in as money in the bank since to my understanding i can withdraw money from it until i am vested.

I am however serious about not having money in the bank after you close unless you have more then enough income to recoup. I warn EVERYONE that is looking for a house how much its horrible being house poor.

Re: Is It True...Re: Getting a Mortgage

Re: Is It True...Re: Getting a Mortgage

when we bought our house we had to show almost a year's worth of bank statements and show where every deposit came from (even down to a $300 deposit of bday checks... ridiculous!). we also had gifted money and had to fill out paperwork and have the gifter fill out some too

Re: Is It True...Re: Getting a Mortgage

Re: Is It True...Re: Getting a Mortgage

Can the person giving you the money give it to you early that way you can have it in your bank acct? It would make your experience with the bank a whole lot easier.

Good Luck!

Re: Is It True...Re: Getting a Mortgage

I bought my house in 2005. We had NO down payment, we 100% financed our house. The only money we had was the money to close which was about $12K. We both had had a very nice income and EXCELLENT credit which was enough in 2005 to qualify for a mortgage without a down payment. We bought at the peak of the market and to be honest, there was no way we could have saved enough of a down payment given the price of the homes on LI..........especially since they were constantly increasing by leaps and bounds. The increases in the home prices was literally outpacing our ability to save. It was a crazy time!

In 6 years of being a homeowner I've never missed a mortgage payment or defaulted on anything so just because I 100% financed my house didn't mean much in the long run in terms of affording my home. However, given the state of the economy and the housing market banks are clearly not 100% financing anyone anymore. We got lucky in a sense.

If you're mom is willing to help you I would have give you the money so it shows up in YOUR accounts this way when the banks pull your bank statements they will see you have the money for the down payment. That's awesome that your mom can help!!!! Good luck with everything!

Re: Is It True...Re: Getting a Mortgage

Posted by Hofstra26

I bought my house in 2005. We had NO down payment, we 100% financed our house. The only money we had was the money to close which was about $12K. We both had had a very nice income and EXCELLENT credit which was enough in 2005 to qualify for a mortgage without a down payment. We bought at the peak of the market and to be honest, there was no way we could have saved enough of a down payment given the price of the homes on LI..........especially since they were constantly increasing by leaps and bounds. The increases in the home prices was literally outpacing our ability to save. It was a crazy time!

In 6 years of being a homeowner I've never missed a mortgage payment or defaulted on anything so just because I 100% financed my house didn't mean much in the long run in terms of affording my home. However, given the state of the economy and the housing market banks are clearly not 100% financing anyone anymore. We got lucky in a sense.

If you're mom is willing to help you I would have give you the money so it shows up in YOUR accounts this way when the banks pull your bank statements they will see you have the money for the down payment. That's awesome that your mom can help!!!! Good luck with everything!

Re: Is It True...Re: Getting a Mortgage

Posted by smdl

Posted by Hofstra26

I bought my house in 2005. We had NO down payment, we 100% financed our house. The only money we had was the money to close which was about $12K. We both had had a very nice income and EXCELLENT credit which was enough in 2005 to qualify for a mortgage without a down payment. We bought at the peak of the market and to be honest, there was no way we could have saved enough of a down payment given the price of the homes on LI..........especially since they were constantly increasing by leaps and bounds. The increases in the home prices was literally outpacing our ability to save. It was a crazy time!

In 6 years of being a homeowner I've never missed a mortgage payment or defaulted on anything so just because I 100% financed my house didn't mean much in the long run in terms of affording my home. However, given the state of the economy and the housing market banks are clearly not 100% financing anyone anymore. We got lucky in a sense.

If you're mom is willing to help you I would have give you the money so it shows up in YOUR accounts this way when the banks pull your bank statements they will see you have the money for the down payment. That's awesome that your mom can help!!!! Good luck with everything!

What happened in 2005 is no longer happening. The no money down, maxed out credit, maxed out debts is what started the whole mortgage disaster a few years ago. NO lender wants to close their doors anymore. DH was approved for a mortgage DOUBLE of what the house he bought for. It was insane! He would have never been able to pay the mortgage he was approved for.

There could be no money down SOMEWHERE but I am no aware of it. I know you can get an FHA for 3.5% down. That's the lowest I know of right now.

Re: Is It True...Re: Getting a Mortgage

Posted by Hofstra26

Posted by smdl

Posted by Hofstra26

I bought my house in 2005. We had NO down payment, we 100% financed our house. The only money we had was the money to close which was about $12K. We both had had a very nice income and EXCELLENT credit which was enough in 2005 to qualify for a mortgage without a down payment. We bought at the peak of the market and to be honest, there was no way we could have saved enough of a down payment given the price of the homes on LI..........especially since they were constantly increasing by leaps and bounds. The increases in the home prices was literally outpacing our ability to save. It was a crazy time!

In 6 years of being a homeowner I've never missed a mortgage payment or defaulted on anything so just because I 100% financed my house didn't mean much in the long run in terms of affording my home. However, given the state of the economy and the housing market banks are clearly not 100% financing anyone anymore. We got lucky in a sense.

If you're mom is willing to help you I would have give you the money so it shows up in YOUR accounts this way when the banks pull your bank statements they will see you have the money for the down payment. That's awesome that your mom can help!!!! Good luck with everything!

What happened in 2005 is no longer happening. The no money down, maxed out credit, maxed out debts is what started the whole mortgage disaster a few years ago. NO lender wants to close their doors anymore. DH was approved for a mortgage DOUBLE of what the house he bought for. It was insane! He would have never been able to pay the mortgage he was approved for.

There could be no money down SOMEWHERE but I am no aware of it. I know you can get an FHA for 3.5% down. That's the lowest I know of right now.

I know that is no longer an option. I specifically said, banks are not doing no money down anymore. I got lucky that at the time we bought we didn't need a down payment but that isn't the case anymore. That is why I said she should have the money her mom is offering transferred into her account so she can show she has the money to buy.

Re: Is It True...Re: Getting a Mortgage

Posted by smdl

Posted by Hofstra26

Posted by smdl

Posted by Hofstra26

I bought my house in 2005. We had NO down payment, we 100% financed our house. The only money we had was the money to close which was about $12K. We both had had a very nice income and EXCELLENT credit which was enough in 2005 to qualify for a mortgage without a down payment. We bought at the peak of the market and to be honest, there was no way we could have saved enough of a down payment given the price of the homes on LI..........especially since they were constantly increasing by leaps and bounds. The increases in the home prices was literally outpacing our ability to save. It was a crazy time!

In 6 years of being a homeowner I've never missed a mortgage payment or defaulted on anything so just because I 100% financed my house didn't mean much in the long run in terms of affording my home. However, given the state of the economy and the housing market banks are clearly not 100% financing anyone anymore. We got lucky in a sense.

If you're mom is willing to help you I would have give you the money so it shows up in YOUR accounts this way when the banks pull your bank statements they will see you have the money for the down payment. That's awesome that your mom can help!!!! Good luck with everything!

What happened in 2005 is no longer happening. The no money down, maxed out credit, maxed out debts is what started the whole mortgage disaster a few years ago. NO lender wants to close their doors anymore. DH was approved for a mortgage DOUBLE of what the house he bought for. It was insane! He would have never been able to pay the mortgage he was approved for.

There could be no money down SOMEWHERE but I am no aware of it. I know you can get an FHA for 3.5% down. That's the lowest I know of right now.

I know that is no longer an option. I specifically said, banks are not doing no money down anymore. I got lucky that at the time we bought we didn't need a down payment but that isn't the case anymore. That is why I said she should have the money her mom is offering transferred into her account so she can show she has the money to buy.

I was agreeing with you.

Re: Is It True...Re: Getting a Mortgage

As someone who went through an entire joint savings on mostly our mortgage payments this past year, because of issues with DH's business, I have to say it was the most stressful time EVER on our marriage.

We are only now starting to be able to put money aside again and build our joint savings back up.

Owning a home is NOT child's play.

If I knew then, what I know now, I really think DH and I should've $ucked it up and rented a little longer, or, lived in the downstairs of his parent's house for awhile to save money.

Our home is not even that big or in a desirable school district, and we struggle.

You DON'T have to buy just because it seems like everyone else is. And honestly, $2K is a heck of a lot cheaper than our mortgage, taxes and other house expenses that are shelled out each month.

I don't know what else to say though.

People are going to do what they want when it comes to buying a home.......even if they can't really afford it yet.

I feel we did at times.

Re: Is It True...Re: Getting a Mortgage

When we recently closed on our refi, the mortgage company checked our debt-to-income ratio. They wanted to make sure we had enough in savings to cover what we owe, not credit card debt, but car payments, student loans, etc., PLUS cover the mortgage.

Re: Is It True...Re: Getting a Mortgage

I think proving the deposits is to prevent money laundering. Sucks that the few ruined it for the many.

Re: Is It True...Re: Getting a Mortgage

Re: Is It True...Re: Getting a Mortgage

If you get a large deposit from a family member into your bank account, it needs to be accounted for. It makes sense from the bank's point of view:

1) They're concerned that you and your mom struck up a deal for her to put $50,000 in your account to make it look like you have money, and that once the bank has been "tricked" into giving you a mortgage, you'll just give it back to her and have no savings again and won't be able to afford closing costs or taxes.

2) What if your mom only loaned you the money, and you now owe her on a repayment schedule of $1000 a month? That's like taking a $1000 chunk out of your monthly income, and the bank only approves you for a mortgage if you have an acceptable debt-to-income ratio. Or what if you went to a loan shark or something, who would take it all back if you couldn't make payments? I'm sure the banks have seen it all.

So from the bank's point of view, it makes sense to require months' worth of bank statements (I think I had to provide 3 months?) and an explanation of what's going on if you have a sudden, large deposit.

Re: Is It True...Re: Getting a Mortgage

without going back and forth about when to get the money in the account..etc..

I just don't think you are ready to buy a home.

Your mindset is not right.

Unless you have an endless supply of people giving you money when sh!t happens, I would try to save your own.

And...sh!t happens...guaranteed.

Re: Is It True...Re: Getting a Mortgage

Re: Is It True...Re: Getting a Mortgage

Re: **UPDATED**Is It True...Re: Getting a Mortgage

my uncle's house is a condo but he is responsible for the roof and windows and he knew about the roof needing to be replaced but the windows he had no clue. I stated earlier he closed and had to install all new windows and fix the air (its more of a single home/condo.) I would def. check what is your responsibility for the condo if its just inside then perhaps you could get away with a little less then 6 months in the bank.

Re: **UPDATED**Is It True...Re: Getting a Mortgage

I don't think anyone mentioned that if you do an FHA loan and put 3.5% down minimum you will be responsible for PMI or MIP (private mortgage insurance) that you will have to pay until 20 percent of the house is paid for, that can be like 10 years or so. That can be about $200+ monthly.

Additionally with FHA you MUST escrow your taxes so at closing you will be responsible for approxmiately 6 months worth up front. Then taxes will be deducted monthly along with home insurance, it add up fast!

Also a home inspection, a lawyer fee all the other closing cost fees they add up so fast too. I would count on 20k for closing costs alone to be safe.

You mentioned all the bills you and DH have, well the mortgage brokers look at debt to income ratio, basically how much you make verses how much you have to spend, they add up how mush is presently on your credit cards, and any other loans, car loans, student loans...It definitely isn't the way it used to be.

But as far as your Mother gifting you, yes you can absolutely do that, she will just have to fill out a paper and provide the cancelled check. But it does need to be in your account.

Good luck! It is a stressful process.

Re: **UPDATED**Is It True...Re: Getting a Mortgage

I'm not going to comment on your situation..just wanted to give some facts:


If you are getting a conventional mortgage (not FHA), you need to have 2 months worth of mortgage payments (Principal, interest, taxes & insurance -PITI) in your account AFTER the closing. You can use a 401K or retirement funds, as long as you can prove that you have immediate access to these funds- something from the fund company- usually in your member handbook.
You also need to show that you are contributing at least 5% of the purchase price of your own funds to the transaction- not a gift. You can use a gift for everything else.

for FHA- 3.5% down, the rules are different..I think it's 6 months PITI, but everything can be a gift. You would need to confirm this. also, you will have PMI (mortgage insurance)

Re: **UPDATED**Is It True...Re: Getting a Mortgage

Also keep in mind there is a GOOD chance the IRS is going to come knocking because the down payment for a condo I am sure exceeds the tax-free gifting parameters.

We owned a condo for 8+ years. Yes there is less maintenance, but there is still a considerable amount of maintenance. You are responsible for all appliances and most likely the windows and heating & cooling units.