My long-time girlfriend and I want to buy a nice house together. We currently live in my townhouse that i purchased 10 years ago (before we met) while i had a regular job. She moved in with me three years ago. I've now been off the grid for almost six years (live poker player), and my tax returns would put me below the poverty level. She makes about $75k annually before taxes, impeccable credit, and she has roughly $100k to put towards a new house. With the equity in my townhouse, plus some savings, I'll have about $200k to put down. Im not sure of my credit score, but it's probably around 700. My questions are...

1. Will we be able to get a mortgage for $200k on her income alone? And is it true that if you put down 50%, you're not required to show proof of income?

2. Since I'll be putting down twice as much as her, is there some way to indicate that on the deed?

Thanks in advance for any help.

Thanks

p.s. not sure if states have different requirements, but we live in New Jersey.

A no doc loan, if you can put 200K down you can buy 600K home.

NO INCOME VERIFICATION - Loans where your income is not requested or verified are limited to 70% Loan to Value. The borrower has to bring at least 30% down payment. The type of loan that is best suited for a particular borrower depends on that borrower's situation. Great Northern Mortgage deals with several lenders that still provide no income verification loans (no income check loans) for W2 and self employed borrowers. Read more about these programs on No Income Check/Special Niche Loan Program and Special Offers pages of our website.

http://www.suntimes.com/business/174...imit-debt.html

I just noticed this article. It was no doc loans that casued the problem, it was no or low down payment loans and 2nd mortgages. Preferably they should just ban all loans, imho. Amazing what politicans can pull out.


Looking to Buy a house but can’t prove income?
A few years ago, your loan officer would have steered you toward a “no doc” or “low doc” loan where you would have to provide limited to no information about your income. But those loans are pretty much dead. Or are they?
Joe Kelly, president of ArcLoan.com, a national mortgage firm, says that no doc loans may be available from “portfolio lenders,” such as credit unions or community banks.
A Portfolio Lender is a company that not only originates mortgage loans, but also holds a portfolio of their loans instead of selling them off in the secondary market.
Portfolio Lender requirements for a no doc loan:
Very high credit scores (720 and up)
No Derogatory marks on your Credit Report
Low LTV (loan-to-value)

https://www.creditfirm.net/blogs/no-...back-2012.html

You will be able to get financing based on her income alone. I wouldn't even put yourself on the deed unless there is a reason for it. It would work but it will be a pain with the underwriters.

As an aside, with rates as low as they are, I would never put 50 percent down. Mortgage interest is tax deductible, you can get a higher return elsewhere, less risk in case you ever have to walk away, etc.

def get on the deed. You want him to just buy his gf house and hope that she lets him live there forever??? lol. Personally, I wouldn't be co-own a house with someone, I'm not married to. Seems like a bad financial decision imo, but I doubt I could convince you otherwise... You should consider letting your gf buy a house and just pay rent (ie. portion of the mortgage payment. Wording is key with gfs.) or vice versa.

You should definitely get on the deed. It's not that difficult for the underwriter.

It sounds like you have been committing tax fraud. If so, buying a house could be a huge target for the IRS as they will question how someone making less than the poverty line had the cash to afford it. Also, if you do state an income that is higher than your tax returns, that isn't going to be good.

Tax fraud plus commitment issues.

Get off the internet gambling message boards and talk to a goddamn mortgage broker.

This imo.
Signing an agreement/contract that the rent paid will also get you percentage of the house is something I'd do in this case.

lol 200k in savings but tax returns show you under the poverty level...

definately let her buy it and pay some rent to her with the agreement if you get married you become a part owner or something.

posts like this make me feel like such a chump giving so much $ to Uncle Sam.

Most of my 200k will be coming from my equity in the townhouse. I bought it in 2000, years before the real estate boom, so I'm somewhat fortunate. While its true I haven't been able to show much income the past few years, I've been paying absurdly high property taxes here in New Jersey, so I too feel like a chump sometimes.

Also, no commitment issues here, I'm just not a fan of marriage, and I don't see the point. Someone mentioned that buying a house w/a gf is a bad financial decision, but to me, marriage is a worse financial decision.

Just to reiterate, my main concern was whether a house can have two names on the deed yet not be split 50/50. But the more I think about it, the less I care. If we split up someday down the road, it will probably be my own fault, so the least I can do is give her half the value of our home. So what if I paid 2/3 of it...at least I'll never be paying alimony.

Probably not but you could get an LLC and put the house in that and own separate %'s of the LLC (this would also add a layer of protection between you and the IRS, which might come in handy since you like committing tax fraud and discussing it on public forums). Or you could both be on the deed and have a separate contract between you that says whatever you want it to say.

Not doing something like this and just hoping for the best is ******ed. Regardless of both your intentions now, when things go south everybody looks out for themselves and nobody is ever fair. Cover your ass.

You have to be a legal owner -- otherwise as others have said what happens when your break up? I just dealt with the opposite situation -- girl put boyfriend as co-owners despite the house being a gift from parents and a few months later they broke up and it was messy and he is demanding to be bought out. Unless you have lots of money you want to keep things clear from a legal perspective because breakups happen.

Beyond that getting a mortgage without income is not hard. I've been shopping for a property for a long time and can't find anything but financing is not an issue. Depending on the specifics you'll need between 20% and 50% down with 30% being the most common.

Yea, marriage may be worse, but buying with a gf is still bad imo. Not saying that you shouldn't get a house and live in it together (that is the main objective right.) I would just have the non-owner pay a lower percentage of the mortgage payment (equivalent to renting) and not dealing with sticky dual ownership of a house after a break up.

Talk to a mortgage lender at a bank. Not the bank you want to use. Just a random bank. This will let you know what you need to do and say to meet the requirements when you talk to the bank you intend to use. This way you walk in knowing what the needs of the banks are. Once you are close to the initial numbers. Talk to a mortgage broker. They deal with lots of different lenders. They can find a loan depending on your needs. Different lenders have different requirements. The more requirements you meet the less risky you are and the cheaper your interest rate is. Your GF's income should get you close to $200,000 in credit. With your down payment $$$ should be fine.

There are a lot of things things that can be done. It might be better to rent your townhouse out instead of selling it. Take out a line if credit on your equity and use this line of credit as your down payment. You can usually get about 60% of the equity as a line of credit without showing income. Banks will accept the rent as income. You will use the rent payment to pay down the line of credit and in a bunch of years you will own it clear and free of the line of credit. Once you have purchased the next house you can also just sell the condo and pay it off.

Talk to a lawyer about a contract with different equity stakes in the new house. I think you both put your name on the title and sign a separate contract with the different % on it. That is between you and your GF. The bank will want you both on the title with equal responsibility.

Have her buy the house while putting her own money down. You can pay rent or divide the bills any way you two think is reasonable.

Keep your cash as your nest egg and safety net in case something goes wrong with the relationship. If all goes perfectly in the relationship, then years down the road you can readjust the deal.

You are entering a risky situation, when you can be in a risk free situation just by staying out of your own way. The only risk you take, and I don't even think it is real risk, is that somehow the house wildly appreciates, and then years later you have a falling out and she claims the profits. Who cares? Owning a home is an expensive proposition. Let her take the risk of legal ownership.

Why you would want to tie up real money into a real estate deal with someone you are not married to, is beyond me. Renting is usually the best choice. The one exception is if you have kids and you live in a community where everyone knows each other. In that case it is my experience that home ownership gives a certain status that is very real, and it effects the children in certain ways.

You have evaded taxes, which is what over 90 percent of poker players do. You are fortunate to have cash. When you sell your current property BANK THE CASH and rent from your girlfriend.

People who roll the dice based on trust, usually have flawed reasoning. Life happens, and if it continues to work out between you and your girlfriend for years and years then everything works out fine. If it doesn't, then you will have dodged a bullet and avoided a monster hassle.

Why not just let her buy the house and you don't put anything into it

Ya

Because we're not married, people automatically assume its not a committed relationship, or that there are trust issues. In my situation, this couldn't be farther from the truth. We have a toddler and we are planning to have a second child. Sure, she would prefer to be married, because she's traditional like that.

We're buying a house together because we need a bigger place to raise a family. The equity in my townhouse is needed for the down payment of the new house, otherwise we can't afford it. Keep in mind, she makes about 75k, and I'm basically off the grid. So in order for us to buy the home we want, we need to put a large chunk down. That will satisfy the lenders, and it will also give us reasonable monthly bills. I understand the reasoning behind taking out a larger mortgage, investing my money elsewhere, but I don't have a steady stream of income, and I'm interested in having low monthly bills. The good news is, the housing bubble already happened, and the house we're looking to buy would've cost us an additional $175k just three or four years ago. So it's not only a great house, but it's not a bad investment either.

Thanks to all who gave advice. I will be talking to a couple different banks to get an idea of what they can offer, as well as to an attorney.

You will be able to get it on her income as long as she doesn't have a ton of monthly debt.
You should definitely get on title for the % of the down payment you are putting in. Hold title as tenants in common as it allows you to specify % of ownership. Very easy for an underwriter. You will have to write a letter stating that you are gifting her your portion of the down payment since you won't be on the loan.
If she wants to feel more secure, you can be on the loan as well and just don't use any of your income. That way you have the asset and the credit liability.
Seeing a cheap attorney to draw up a basic buy sell agreement in case something happens (break up) as well.

You should pay your taxes

You need to start going back and amending your 1040s. The IRS will be a lot more forgiving that way. This will bite you in the ass.

Houses are not an investment, pay your taxes, and buy your girlfriend/mother of your children a ring.

sounds like there's a decent chance you could go to prison if you purchase a house at this point. why haven't you paid your taxes?

Don't cheat on your taxes and buying a home is a huge red flag, you'll probably get audited then sent to prison.

No. You're getting overly defensive and assuming that we are assuming that. My advice still holds. The IRS issues are another big reason to not split ownership...