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Hey fellow twin Mama! What a fun coincidence… Mine are 15 months now they and doing great!
@ttrumble YES! We have twins and it indeed was a whirlwind in the final stretch of pregnancy and bringing home our little babies. High-five fellow twin parent!
We are so excited to be moving along in the process to find a forever home for our littles.
I have lived in a bunch of city/states and have NEVER had gas, electric, internet reported to my credit reports. I have also had Verizon before and Tmobile and they NEVER reported to my credit reports either.
I will also say that around our babies being born things got crazy and my husband forgot to pay the electric bill, he eventually paid the electric bill a full 16 days late. We were all worried about it messing us up for NACA. It hasn’t. Electric Co. charged us a $5.00 late fee. My mortgage counselor has told me it is fine. I do however have car note, credit card, and 4 students loans on my actual credit report (all never late). So I do not need to use an alternate proof of credit history. I did not even have to turn over that late bill it was 11 months ago.
For most utility and cell phone providers the only reason they would report to credit bureau is if you are VERY late. I am not talking 16 days I mean like months past due.
Honestly that sounds really odd. My counselor asked me for 3 months of bank statements so why is yours going back so far? It also is not a gift so I would be uncomfortable having someone right a letter saying it was. I would ask if your own LOE along with the closings docs showing you kept half the proceeds from your home sale would suffice. I suppose if he is willing to write it that should not be a big deal but it is very peculiar.
You’re right I should clarify @pat you cannot have it both ways. She is either on the loan to increase purchasing power OR you keep her off the loan accept the reduced purchasing power her and preserve her lower dti of whatever future credit based purchased she has in mind.
@Ttrumble I think he worded it different but what he is trying to say is she wants to preserve her ability to take on future debt. So although NACA will look at the whole household if he chooses to limit their mortgage to affordability to his income alone and NOT have her sign the mortgage, then the mortgage will never be on her credit file. (again provided their whole household picture supports the situation, like she is making enough money to support all her debt solely)
Hopefully Tim can clarify but my sister and brother-in-law did something similar. He borrowed the mortgage alone based on his income alone which obviously will lower how much house you can get but they were okay with that. She did not want to borrow the mortgage because she is later in a year or two trying to open her own salon and take out a business loan in her name alone. Again her income and credit is fine and they could have put her on the loan to increase their purchasing power but made the decision not to. I should also add it may matter whether or not you live in a community property state.
Are you asking the developer of the home to finish the basement as a part of their build? If so they would add that into the regular sale price and as long as it appraises, is within your budget that should be fine. However, if you are seeking to hire a different contractor to finish the basement that would require a rehab/reno loan through NACA. You may run into appraisal issues but may not. They will first appraise the house as is and then you will get a contractor to draw up the scope of work for your proposed basement and the appraiser will give you a second after renovation appraisal. You can borrow 110% of that after reno value (ARV). Finished basements may or may not add the amount of value you need to get the loan amount approved. Keep us posted if it works.
I would try reaching out to some FHA 203 contractors they may be more amendable to working with NACA since the payment process is similar. To clarify what Nelsont said ALL contractors get paid after closing ( even when not using NACA) because why would they be paid if you do not yet own the home? So with NACA after you pick your contractor they can submit to NACA to be paid 1st for the materials (a material draw from the funds held in escrow) then they can ask for inspections as the project goes along and be paid piece by piece assuming its a large enough job. If the job is more singular, for example my friend needed a new back porch the one there was not to code. The contractor can be paid once upfront to buy the railing, concrete, etc and after they finish the job they will be paid for their labor.
Honestly I would love to see those emails because any work done before closing HAS to be done by the seller here in Illinois there is literally NO WAY you can legally have a plumber, roofer or contractor doing work on a house you do not yet own. The liability and legal issues there are endless. A roof may require an architect again that is all dependent on where you live (city permit codes) and the nature of the repairs but again any buyer made changes here in Illinois are unequivocally made AFTER closing.
Any required repairs can be A) made by the seller before closings B) made by the buyer by being wrapped into the mortgage and done after closing by a NACA certified contractor.
Imagine a buyer puts a new roof on the house and then the seller for one reason or another decided not to close on the deal or title issues are later discovered and now the buyer is left holding the bill for placing a new roof, kitchen, whatever on a house they do not even legally own.
Nelsont is not exactly correct you actually close on the home BEFORE you make any repairs. The seller has nothing to do with it, they would absolutely not let a buyer start knocking down walls etc. until the closing is a done deal. The person who introduced me to NACA bought a home that needed required repairs and they also had some desired changes. The seller made absolutely no repairs. They bought the house for 82k and had two estimates that the work needed and the work they wanted (wish list) would cost another 25k. Obvi the numbers have to still meet your PITI and the before reno and the estimated after reno appraisals have to work. So they closed on the house like a normal closing and took the house “as is” after closing they hired a naca approved contractor to do the work which including adding a bedroom in the basement, some pipe and electrical repairs, painting the whole place, and a new fridge. I should also add they did not need to use an architect because they were not making any structural repairs or changes. Their estimates were done by contractors. Permits are going to be totally dependent on where you are looking to buy all that stuff is controlled by your city or township. Once you know what kind of repairs you are facing the contractor should be able to give you an idea of what will be needed regarding permits. I am hoping to buy to buy a fixer upper too.
If I were you I would absolutely continue to pay rent until you move. I don’t know what state you are in but I do not see where the “dispute” is? The landlord is well within her rights to sell the property she owns and ask you to vacate provided she is not violating the terms of the lease. Either way I’d pay so you have that record to provide to NACA that you have always paid your rent in a timely manner. The lawyer is probably betting that she will not sue you for backrent because she likely would not win in most states if the apartment is not legal. I am not sure that explanation will fly with NACA though…