What are the effects of outstanding business loans on my home mortgage application?

Posted on Nov 5, 2023 in FHA Information

Question by Cat: How do you get out of a house that you can no longer afford?
Loan written on unimproved land, tadalafil more about so there was a 5, order 000shortage in escrow, so payment almost doubled. We refinanced, but payment still went up a bunch. Market crash, house no longer worth what it was when we moved in, so we are upside down.. electric bill is crazy! Our credit has been destroyed as we struggle to keep our heads above the water. We have already done the Home Affordable Program. This has helped but we are still not making ends meet.

Best answer:

Answer by Michael P
I’m not expert on this, but your best bet is to call an agent that is CDPE (Certified Distressed Property Expert). Basically if you can, Short Sell it is the best option, but a lot of people can’t get the banks to agree on this but a CDPE would be able to help you with this. It would have the least affect on your credit. The next would be a deed in liu foreclosure. Essentially telling the bank, here’s the keys, I’m not gonna trash the place, or have anything drug out in paperwork process I’m just walking away. A bit less of a hit on your credit than a foreclosure.

I spoke with this guy:
http://www.zillow.com/profile/Kris-Chun/
He was absolutely outstanding in the amount of free time and information he gave me. He’s based out of Napa CA not sure where you are, but he would probably have a website or name of someone in your area you could talk to.

Best of luck with all this.

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Question by Nikki: How much longer should I have to wait?
I put in my application for a home loan through USDA a week ago last Thursday. They said Friday that they had got my credit report and rent verification, more about they said they are now waiting on my income verification from my 2 employers. How much longer should it be before I know I am approved?
I know I can call, side effects but all they tell me is they have 30 days to approve me. I just want to know how long you had to wait from when you put the application in?

Best answer:

Answer by Jeremy R
It’s not a big deal to call and ask how the application is progressing. It won’t make a difference either way.

Know better? Leave your own answer in the comments!
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Question by : What are the effects of outstanding business loans on my home mortgage application?
I have debt from my old business and now I am a student. However we deligently paying monthly minimum payment. To purchase a home I am willing to put 5% down. With me and my spouse we have more than required income to pay monthly mortgage and other expenses.

What are the chances of obtaining mortgage loan in this situation? Is my application going to get rejected ? Does business loans have any impact on my personal home mortgage application?

Best answer:

Answer by liveinmd
It will depend on whether the business loans were made to the company (usually done for corps) you, capsule as the owner, erectile made personal guarantees (usually done for sole proprietor companies). 5% is not a lot in this current market; most lenders want 20% unless you go FHA.

If the business loans were done for a sole prop company, then they would be included in your ratios and the payment history will appear as part of your credit history.

Add your own answer in the comments!

One Comment

  1. This depends how the debt is structured (is it personal debt of yours or of your old company – was your company incorporated?)

    Even if it is personal debt, you might easily still qualify for a mortgage if your debt is under a certain percentage of your income. Mortgage companies use what’s called a Debt-to-Income Ratio (or DTI). This is simply comparing how much you owe to how much you make. Mortgage companies want to be sure that you’ll still be able to afford your mortgage payment after you pay your other monthly debts.

    So, as long as you have enough income, it doesn’t really matter how much debt you have.

    And 5% is enough to get a conventional loan in today’s market (though you will have to pay private mortgage insurance monthly). You can get an FHA with only 3.5%.

    Speak to a trusted mortgage professional and they’ll run your numbers and let you know if your debt is at a qualifying level.

    Good luck!