10-03-2011, 11:53 AM
Join Date: Aug 2011
| | Housing Advice
I mentioned the difficulty in finding housing in a previous post. Well, the difficulty continues. I just got off the phone with a loan officer for BBT bank. Because the mortgage is in both my name and his name, and is therefore on my credit, my debt to income ratio is too high and I do not qualify for a home loan or a credit check for a rental (eventhough I have great credit and the income to cover rent/ mortgage). Which means, that I cannot safely find a legitimate place to live until I have a separation agreement, but I don't want to pursue a separation agreement until I have some place to live.
My one option is to get 100% financing for a 4.75% 2-year adjustable ARM through our local state employees credit union. I have a relationship with the bank, all my other accounts are there, I wouldn't borrow more than I can float even at a higher interest rate, and the loan is guaranteed not to increase more than 1% at the 2-year mark. It is an ARM, but I would like to think that I can refinance sooner rather than later, they will loan to me (granted, significantly less money) with the other mortgage on my credit, and hopefully by closng (6 weeks from time offer is accepted) I would have the separation agreement in hand and husband would be responsible for the old house and mortgage. I ran this by two people who said I was insane to get an ARM when fixed rates are currently 3.5% and I may not be able to refinance in two years. However, none of the 3.5% lenders will even start an application with me due to the old mortgage and I can't rent from anywhere legitimate without a credit check that will show I cannot afford a rent payment due to current mortgage payment.
This is so over my head. I don't live anywhere close to family or friends that I can stay with. Does anyone have any ideas, suggestions or experience to help me here?