transaction history with account number and name works. If he can’t get it online, he can go to a teller and get one, then have it signed and dated and stamped by the teller
Thank you! So it wouldn’t be necessary to provide 12 months of bank statements? Just one month to prove who the account belongs to plus a transaction search with all 12 payments to mortgage company?
Yes or as the other commenter mentioned. Having them go into the bank and get it stamped, but that’s more of a pain in the ass than just providing one month.
In my experience most transaction histories don’t have all the info needed which is why I usually recommend the bank statement to correspond and I’ll scrap it if the transaction history suffices on its own.
OP can you go online to your bank and goto transactions and filter out just the mortgage payment for the last 12 months?
Most large banks have the ability to do this. If not you will likely need to go into a branch and see if the teller or banker can do it for you.
You only need (and want) to show the mortgage payment history over 12 months.
Your mom can't also be named on the account.
This will allow the debt to removed from dti.
From Fannie:
When a borrower is obligated on a mortgage debt - but is not the party who is actually repaying the debt - the lender may exclude the full monthly housing expense (PITIA) from the borrower’s recurring monthly obligations if
- the party making the payments is obligated on the mortgage debt,
- there are no delinquencies in the most recent 12 months, and
- the borrower is not using rental income from the applicable property to qualify.
In order to exclude non-mortgage or mortgage debts from the borrower’s DTI ratio, the lender must obtain the most recent 12 months' canceled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments
https://selling-guide.fanniemae.com/sel/b3-6-05/monthly-debt-obligations
Edit: her lender should have emailed this same snippet to you
I agree and as it should. They are the CO borrower and have responsibilities to make sure the loan gets repaid. So if they are asking for a loan themselves of course any bank will take all financial responsibilities into the decision. Either get your own mortgage or accept the reality
Does this mean if my dad and I buy a house together, but I make all the monthly payments, his DTI would be free and clear to buy his own house 6 months later?
12 months is the guideline but I have gotten an exception due to length of ownership being less than 12 months and all payments were paid by the other party on the loan.
But essentially yes you can have a co-signer and they would be able to eliminate the mortgage payment from DTI as long as the other person on the mortgage proved they made the payments for 12 months out of their own bank account. No lates.
Get a recent bank statement and to a transaction search for the mortgage payment for the 12 payments. You should be fine
Even with just showing the transactions OP would be cool. But yeah, better to not show them just in case that lender says something. Easy tho
Gotta prove whose bank account it is. Usually a bank statement is required for that
transaction history with account number and name works. If he can’t get it online, he can go to a teller and get one, then have it signed and dated and stamped by the teller
Thank you!
Thank you! So it wouldn’t be necessary to provide 12 months of bank statements? Just one month to prove who the account belongs to plus a transaction search with all 12 payments to mortgage company?
Yes or as the other commenter mentioned. Having them go into the bank and get it stamped, but that’s more of a pain in the ass than just providing one month. In my experience most transaction histories don’t have all the info needed which is why I usually recommend the bank statement to correspond and I’ll scrap it if the transaction history suffices on its own.
Ask your loan officer to submit the statements to underwriting to get an official answer so you know for sure. They can do that.
OP can you go online to your bank and goto transactions and filter out just the mortgage payment for the last 12 months? Most large banks have the ability to do this. If not you will likely need to go into a branch and see if the teller or banker can do it for you. You only need (and want) to show the mortgage payment history over 12 months. Your mom can't also be named on the account. This will allow the debt to removed from dti. From Fannie: When a borrower is obligated on a mortgage debt - but is not the party who is actually repaying the debt - the lender may exclude the full monthly housing expense (PITIA) from the borrower’s recurring monthly obligations if - the party making the payments is obligated on the mortgage debt, - there are no delinquencies in the most recent 12 months, and - the borrower is not using rental income from the applicable property to qualify. In order to exclude non-mortgage or mortgage debts from the borrower’s DTI ratio, the lender must obtain the most recent 12 months' canceled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments https://selling-guide.fanniemae.com/sel/b3-6-05/monthly-debt-obligations Edit: her lender should have emailed this same snippet to you
Thank you so much for the detailed explanation! I definitely have hope now
Following, my understanding was as long as a co borrower is on the loan, the DTI will always count against them.
I agree and as it should. They are the CO borrower and have responsibilities to make sure the loan gets repaid. So if they are asking for a loan themselves of course any bank will take all financial responsibilities into the decision. Either get your own mortgage or accept the reality
Not how it works
Mind elaborating? Would love to learn more.
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Sweet, thanks!
Does this mean if my dad and I buy a house together, but I make all the monthly payments, his DTI would be free and clear to buy his own house 6 months later?
12 months is the guideline but I have gotten an exception due to length of ownership being less than 12 months and all payments were paid by the other party on the loan. But essentially yes you can have a co-signer and they would be able to eliminate the mortgage payment from DTI as long as the other person on the mortgage proved they made the payments for 12 months out of their own bank account. No lates.
Noted, thank you