Just Approved Jay Tolisano Mortgage banker helps client paying alimony qualify for home
Mortgage banker: Jay Tolisano
Property type: Single-family home
Purchase price: $700,000
Loan amount: $576,000
Loan terms: 7/1 Adjustable Rate Mortgage
Background: Jay Tolisano received a call from a potential home buyer to purchase a single-family home.
The buyer was having a tough time qualifying because he was paying alimony to his ex-wife and that was hurting his qualifying ratio. Every loan program has a maximum debt-to-income ratio.
The debt-to-income ratio is simply the customers overall credit debts on their credit report, alimony/child support (if applicable) and total housing payment compared to their gross income.
Tolisano started the application process and pulled the pieces of the puzzle together, asked all the important questions and uncovered the data he needed.
When an obligation like alimony, usually a significant figure, is charged as a debt versus being deducted from the borrower’s income, the result in the qualifying ratios is huge. Charging the alimony as a debt typically makes it tough to qualify.
In this case, when alimony was charged as a debt, the difference in the total debt to income ratio used to qualify was well north of the eligible. When alimony was deducted from income, the debt-to-income ratio was under the allowable guideline at 35 percent.
Tolisano’s firm, CrossCountry Mortgage works with many lenders, some of which allow the alimony to be deducted from income versus the typical standard underwriting guidelines that require the alimony to be charged as a debt.
In addition, this client was able to buy a home using a jumbo loan with less than 20 percent down and avoided payment for private mortgage insurance.
The devil is always in the details. When Tolisano gets a call from any homeowner, even if they say they were once declined elsewhere, he always takes a shot, as his goal is to help the clients succeed.
There is always a story, and if you dig deep, ask the questions and listen there is likely an answer and solution.