All Forum Posts by: Ellie Narie

 She doesn't have income on her tax returns, she was in college.

Also, what about people who plan to quit a job after they close on a mortgage? Are they committing fraud? 

 There aren't any other legit options to buy a multifamily with low downpayment and less than 2 years of self employment history. Hard money lenders require 30% down. 

 Boyfriend's name will not be on the mortgage or the house. 

 I guess the real question is, is this illegal to do? And if so, how should the girlfriend obtain financing so that it is legal?

 I am not saying that this situation is about me. However, what would need to be done so that the girlfriend qualifies for the loan without it being fraud? As I was asking before, is there a certain time period that the boyfriend has to pay her the higher income so that it wouldn't be considered fraud? 

 Exactly. The boyfriend makes plenty of money and would love it if he could qualify for a mortgage on his own, but unfortunately, he can't, because he doesn't have two years of self-employment history. Would it be fraud to do this workaround? 

 I looked up the definition of liar loans, and it looks like people actually lied on their income and didn't have proof of income. I'm talking about having proof of income for just a month or two. Would the girlfriend have to reveal the fact that she works for her boyfriend and that she doesn't plan to "earn" this much income later on? 

 I don't know, that's why I'm asking. How can the boyfriend and girlfriend make sure that they're not committing fraud but still get a mortage? Should the boyfriend pay the girlfriend the same salary for 6 months? A year? How long should the boyfriend pay that same (higher) salary to the girlfriend so that it is not considered mortgage fraud? 

Let's say there's an unmarried couple with kids. Boyfriend has a business and is considered self employed, but he can't get a mortgage because he doesn't have two years of self employment income. So, he "hires" his girlfriend to "work" at his business, but she really doesn't so much if anything, he just gives her a paycheck. However, at first, the purpose of this paycheck wasn't to get a mortgage, hence, her paycheck is only like $1000. BUT, now they want to get a house, specifically a 2-4 unit owner occupied with FHA loan. So what the boyfriend does is he will take money out of his savings account and increase the girlfriend's income for just a month or two so she can qualify for a bigger loan, so that her paystub shows that she makes a lot. And then after she closes on the loan, he will reduce her income back to the 1000. Now, girlfriend has been going to college full time for the last two years, so it's not like mortgage brokers will care about two years of income, because she can substitute that with her full time college transcripts.

Would this scenario be considered mortgage fraud, where the boyfriend specifically increases girlfriend's income (even takes money out of his savings account to do so) for just a month or two so she could qualify for a bigger mortgage loan?