Mortgage Advice for Expatriates Living Abroad
My husband and I would like a joint mortgage to purchase a 3 family home with his parents. My in laws, who are supplying a 30% down payment, are expatiates living in Asia and plan to move into the property within a few years. We’re running into an issue with lenders not offering financing unless…
My husband and I would like a joint mortgage to purchase a 3 family home with his parents. My in laws, who are supplying a 30% down payment, are expatiates living in Asia and plan to move into the property within a few years. We’re running into an issue with lenders not offering financing unless his parents move into the property with 30 days of close. Otherwise my husband and I will have to prove we can cover the monthly mortgage payments for the entire home since we can’t include the income from the other apartments as we don’t a history of managing rental properties (which we’re not able to do). Does anyone have experience with this type of situation?
hi acer – every lender has different policies. We do allow rental income from the property to help qualify you for the loan, even though you might not have experience managing properties. However, you must be occupying one of the units as your primary residence. Do you own any other properties? You can feel free to email me if you would like to discuss further. Thanks. sunny.hong@bankofamerica.com
Maly – OP said inlaws are expats (not foreign nationals), so I think legal residence is not an issue.
Sometimes lenders will require certain stuff before lending you money, but once you’re paying them on time every month they may become less concerned and aren’t likely to be doing bed checks to see who’s living there. What if the in-laws now “intend to move in within 30 days of close” but 2 weeks after closing get an offer they can’t refuse and spend a couple more years abroad? Not saying you should commit fraud on your application but I would suggest working with a mortgage broker who can help you find lenders who’ll work with you and/or package your application in a way that will make the lenders comfortable.
PdT, the in-laws will have to show legal residency status at closing, so that would only work if they have a green card.
Well how about having your in-laws establish an address in the home even if they don’t live there permanently i.e. have gas, electric, and cable bills in their names and also have them visit within 30 days of closing plus periodically….sort of a vacation home.