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Tulsa Mortgage : Podcast 36 – Part 1

Steve: This is episode number 36 of the Steve and Tyler show.

[background music]

Speaker 2: Welcome to the Steve and Tyler show, with Stevecurrington.com, and Tyler Wilburn.

Steve: Who negotiated the contract for you?

Tyler: A realtor.

Steve: They’re pretty smart, good for you more man.

Speaker 2: They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready, because here’s Steve, and Tyler.

Steve: Stevecurrington.com here and Tyler Wilburn, Steve and Tyler show, you Tulsa mortgage experts. Doing our podcast here on an early morning, early, early; Tyler?

Tyler: Yes?

Steve: How you doing bro?

Tyler: Doing well.

Steve: Good. We are talking about something that happens pretty regularly actually, probably everyday almost, is. “I have great credit, but my spouse has terrible credit, so what do I do?” That’s the big question. I Just met with a guy yesterday Tyler, he has income, self-employed, and he has tax returns and everything, but he has terrible credit. The issue always becomes, “Well, I can qualify with my koala, for a Tulsa mortgage with my wife. As income, we can get what we want, but my credit’s messed up. Does that help them Tyler?

Tyler: Not so much. No.

Steve: No. So, if you bad credit, and your wife has good credit, your wife has no income, and you have income, you’re toasty. If we’re going to use your income to qualify, then we’re going to use your credit to qualify. The mortgage probability of it getting paid back is based on the primary borrower’s credit history. So, if you’re the bread winner and your credit’s messed up, that tells us how you will probably pay the payments on this mortgage, regardless of what you say, that’s what the statistics say.

The numbers don’t lie. When the income from the household is coming primarily from a person who’s credit is messed up, that’s probably how they’re going to pay their mortgage, it just is what it is. But there are ways that you can still try to get qualified with only one spouse’s income, and so, that’s one situation where I work, my credit’s messed up, my wife doesn’t work, her credit’s perfect. In that case we have many, many times before, used what we call a non-occupying co-borrower.

That’s when we substitute the income we can’t use with you, with someone who has some income, and has some good credit to help you qualify for your loan. We do that quite often, in fact we just did one for a lady who had — she wasn’t married, but she had limited credit and income, so we added mom and dad as non-occupant co-borrowers. What does that mean Tyler, when you have a non-occupant co-borrower?

Tyler: It means that they credit qualify to be on a loan, first and foremost. They’re not going to live there.

Steve: They’re not going to live there as their primary residence, correct.

Tyler: It’s almost like a co-signer.

Steve: Exactly, it’s like a co-signer for a mortgage. People don’t know this, but they do it all the time. In fact you can do it on both an FHA loan. If you might get a Tulsa mortgage and you get an FHA, or if you’re doing a Tulsa mortgage and you’re getting a conventional loan, you can do that. You can’t do it on VA, because a veteran can only have a co-borrower on the loan who is their spouse, so you can’t do it on VA. But, you can on FHA, you can on conventional.

Essentially what we’re doing in that case is we’re saying; we’ve identified that there’s another household income that we can’t use. I can’t use the husbands a hundred thousand a year, even though he has a hundred thousand in income, because he’s credit’s messed up. I can use mom, dad, uncle, cousin, grandma, grandpa, somebody like that, that will go on a loan.

We got another couple where it’s the son, and his fiancée, and the grandma that are all going on a loan, because we went through all the options. It was like, “Husband and wife, no, wife, son, no, wife, son, fiancée, no. Okay, what about grandma?” [chuckles] Sometimes you got to be creative in figuring that out. Depending on the family and what resources you have, you may be able to still qualify for a loan, and not have your spouse on the loan.

However, there’s a huge distinction between home ownership being on title, and owning a property, and who’s actually responsible for paying the loan back. People ask us all that, all the time Tyler, “Can I still be on title?” Because if something happens. Let’s say in this new world that we’re in, Tyler and I are married, and Tyler has really good credit and he makes not as much money as me and I have really bad credit.
We’re going to put our other dad on the loan with us, it’s going to be Tyler and our other dad and they’re going to qualify together. Then my question is, I can’t be on the loan because my credit’s jacked up, right?

Tyler: Right.

Steve: Can I be on title?

Tyler: Yes.

Steve: How?

Tyler: You can put anybody on Tyler.

Steve: Exactly. Even this book that was wrong in our last thing says you can put anybody on title. You can designate almost anyone you choose to have a legal interest in the property, and have their names recorded on your title report. Heck, you can even Santa Claus to appear on the title of your property, as long as you can get him to show up at closing and sign a deed.

[laughter]

Tulsa Mortgage  Steve: You can get Santa Claus on your loan. You don’t have to show up at closing and sign a deed, once you’ve closed, because if you’re getting a lien on the property, you’re getting a loan, it’s going to close in your name and whoever is obligated, then you could quit claim deed. Quit claim, Q-U-I-T. A lot of people say quick claim because it’s quick and easy but it’s not, Q-U-I-T.

Tulsa Mortgage  You can quit claim the property like I’ve done into our family trust, we’ve a family trust that we’ve put our property in, because our family trust designates and determines. If something happens to my wife and I, what is done with the property, rather than having to go to probate and being fought out in a court. We’ve got a will and a trust that tells people what to do.

You can put it in your next door neighbors name if you want to, technically, it doesn’t mean that you don’t own the lien anymore, because the lien is still attached to the property. It does, for ownership purposes, allow you to either add or subtract people from the title report. Right Tyler?

Tyler: Correct.

Steve: What else do we got here?

Tyler: What do we got?

Steve: You can have Santa Claus get on your loan. Your title ownership, or legal interest in the property, is much different from paying back a home loan. Basically, and what we were talking about is, you could do a loan in your name, and then you can just have your spouse added to the loan or — excuse me, to titles, so that you would essentially have your spouse on title with you, but they won’t necessarily be on the loan.

Tulsa Mortgage  It’s a really funny. You ever hear me say this at closing Tyler. It’s always very like kind of aha, ha chuckle, when it’s the wife that is on title and owns the property just as much as the husband, but isn’t obligated to make any payments, but it’s not so much funny whenever the husband is on title but the wife is the only one obligated to make the payments .