I purchased my mini with the mini select loan. I now may need to get rid of the car to qualify for a new home loan. Can anyone tell me if I can just advertise it as a take over payments? I'd lose my down and last year of payments but I'll do what I need to do to get the home loan through.
Any feedback or personal experience with this would be appreciated.
Thanks......

 

Is this a loan officer telling you to dump the payments? If so, have you shopped for another lender with some different qualifying criterias?

If you only have 12 months or less on the lease, the lender usually will not count that towards your overall debt-to-income ratio.

There are some businesses that match people to take over payments (both leases and purchases).

I don't lease and always buy and the above is based on past experiences and know of a couple of friends who had the same issues.

G/L

 

From what I understand the mini select loan is a loan and not a lease. It is a balloon loan where you make low payments for a set period of time and then have a final balloon payment due at the end (Hopefully you are saving a chunk of change each month for that balloon payment that will be due).

If this is the case I would think you are free to do with the car whatever you want meaning sell it or trade it in. Read all the loan documents and it should tell you exactly what your options are.

 

Yeah, im pretty sure it is not a lease but best to make sure. Its actually illegal to offer the mini select plan in 22 states (i think) because of the balloon payment and people get them selfs into trouble. but i am almost positive you could sell the car on your own.

with the first poster, 99.7% of loan companies do not count the final year of "payments" for your Debt to Income ratio. I would look to other mortgage lenders if they are requiring you to sell this. I am fairly confident that the overhaul bills signed into office they did not take out the final year debt:income

Good Luck!

 

Except that at the end of the last year of payments he still has a large balloon payment due, unlike a lease where you simply can turn the vehicle in and the debt is relieved - that's why it's affecting his debt/income and his ability to qualify.

However, getting someone to take over the payments is not as easy as you think - they actually have to have better credit than the OP, and the OP is usually still on the hook for the loan. Also, what happens when the balloon comes due?

The answer is to sell the car, or find another lender who's lending criteria are a little looser.....of course that usually means a higher interest rate or points.

Maybe you're getting into too much house at this time?

 

Don't just go to the first place to borrow $$$$. Shop around for the best deal. Unless your car payment is taking up 75% of your income and the house your buying is not worth what your paying you should be able to get into a house without selling your car.

Get the house appraised and be very sure to get a house inspection before signing anything.

 

OK, the question is not so much a realestate question although some good points were made. I'm just looking to pull some cash outta one of my houses that doesnt have a loan on it now.

I was just wondering about my options in regard to the mini loan since they apparently dont care that the houses are all paid for but the mini is not. Go figure

 

Sounds like you need to get just a little creative; borrow against the house the cash you were seeking PLUS the pay off on the MINI. The bank pays the note off on the car and you in effect have 'rolled-over' the car debt into the home equity payment. Depending on interest rate and fees it COULD be a win-win for you and make the lender happy. It requires adequate equity in the real estate of course...the upshot is that the MINI is now unencumbered and you can just sell it outright if needed.