Just Approved: Co-signers help client get loan

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Mortgage adviser: John Holmgren.

Property type: Single-family residence in Berkeley.

Loan amount: $440,000.

Loan type: 30-year fixed.

Loan rate: 4.5 percent.

Backstory: Holmgren’s client was a self-employed day care provider, running a successful business from her Berkeley rental home.

Notified that her landlord wanted to sell the property and unable to come to agreement with him on a price she could afford, she began looking for a replacement property to buy with the help of agent Billy Witort of Realty Advocates in Berkeley.

In qualifying the buyer, Holmgren quickly came to the conclusion that the buyer would not qualify for a property purchase thatwould meet her client’s needs. Since she lacked qualifying income, the situation became exacerbated by the fact that she had a very lowdown payment.

Holmgren suggested she ask relatives if theywould be willing to provide additional funds to supplement her downpayment and/or to cosign with her to increase her qualifying income.

Fortunately both her father and sister agreed to assist in this manner, so Holmgren arranged a fully underwritten loan preapproval that put the clients in a position to make an offer without a financing contingency.

Mortgage agencies will often allow qualification using the income of relatives even when they are not going to occupy the property being purchased— provided that the underwriting analysis also takes into account the debts of the cosigners.

In the meantime, Witort was diligently searching for a property thatwould meet the unique needs of the client in terms of its location, room layout and yard.

Hewas finally successful in getting an accepted offer for the buyer. The property was appraised and once it passed underwriting review, escrow closed.

Once again, leaving no stone unturned enabled another client to achieve home ownership.