Didn't know you went over to the other side :rolleyes:

1&2: I think Shakespeare has warned us that it was a distinct possibility.

3: But in court, aren't you going to have to say that you lied when you said you gifted her the money when it was actually a loan? You sure you want to do that? Aren't you going to be like the Einstein that reported to the cops that someone stole his pot? The only reason they didn't charge him was that there was no pot around and no evidence other than his words.

I think we're missing some of the story.
Perhaps the lender doesn't view the overtime as secure enough a source of income to meet its criteria. Or without the overtime, she fails to qualify.

She seemse to be a marginal loan candidate at best.
Try another lender. FHA or something.

Where's Med Mech when we need him????

I know that Medicare does not allow you to have too much assets. Maybe this is a low income loan where if you make too much you do not qualify since you are no longer "low income"?

Aklim, six posts out of 19? Slow down, dude, save it for the next one.

http://usgovinfo.about.com/cs/grantscontracting/a/housingloans.htm

ELIGIBILITY REQUIREMENTS
Applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI), low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI. Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history.

I assume that Swede wouldn't have to make any signed declaration about gift or loan to the lender. If the bank requires a signed declaration from the "lender" friend or relative my view naturally chnges. But if that's the case. how would the bank know where I got the money from if I decided to deceive them and tell them it was personal savings?

The bank's in the first position anyway. 1,200 would be a teensy weensy fib on the friend's part. If the lender is requiring 10 or 20% down, it's not likely to end up being litigated.

Make sure she has explored all her options. If she has a 401 and it is her first home purchase she can take out up to $15k with no penalty.

I think he could have (or maybe should have) ended with #7.

That one pretty much covers it.

let me add my opinion (already stated)
only lend it if you never expect to see the money again. If she needs $1.2k to buy a house (paying realtor's fees ?) then she isnt in a good spot already, however, its difficult to argue that house prices are going to go down in the forseeable future...

And keep your family's retreat - you don't get retreats without being smart with money in the first place =)

-John

:blush: :dunce:

Nope!

Like I said, I think we're missing some of the story....whether she's trying for a conventional mortgage for traditional housing or is attempting to get into a subsidized setting. That would turn the issue of overtime 180 degrees.
But if the overtime was pushing her out of consideration for a subsidized loan, why the need for the 1200 anyway?:confused:

I have to re-read the particulars, but what you just mentioned is pretty much the crux of it.

Couldn't have said it better myself.

If she doesn't have $1200 left in her account after buying a house, she shouldn't be buying the house. How is she going to pay to have the cable hooked up? Etc...etc. Owning a house costs money and if she is broke when she moves in then it is a bad idea.


If you feel like giving her $1200 then go ahead. But if you feel like 'loaning' her $1200 then I would politely tell her what I just stated above and then say no thanks.