I will now be able to close loans when a borrower will start a job after the date of the note:
Future income must be documented with a formal offer/contract from the new Employer stating all pertinent information (start date, salary, etc.) and be non-contingent. It must be signed by the employer & accepted by the borrower. The borrower needs to start the new job within 60 days of closing and have reserves equal to 6 months PITI of new loan. A Verbal VOE within 10 days prior to closing verifying terms of contract have not changed will be required.
With Graduations from College and more specifically Medical and Law Schools coming up in 4 short months, it is a great time to start marketing this to students that fall into this category.
Don’t forget that our Non-Occupant Co-Borrower program also can be combined with this.
Sometimes borrowers don’t qualify on paper, but life is not lived on paper. Because we have access to a Freddie Mac Seller/Servicer we can leverage our enhancements for you and your clients. We allow a relative to co-borrower without having to occupy the property you are financing. The ratios (income and debt) and credit are blended between all borrowers (think Parents and college age students, AND even adult children and older parents).
34 million of the Generation Y (17-34) are still living with their parents? Many of those parents would like to see their children move out soon.
Also, vice-versa the baby boomer generation is retiring at a very quick pace and they may have income that decreases but have assets to make a payment, their adult children can help them purchase or refinance.