Wife Getting a Home Loan Issues

[Jaygee]

Hi, My wife of 3 years and I want to stop renting and buy a house, I have thought about many of the pro's and cons that are bandied around, I have made our decision. I will definitely be keeping other assets in my mother country in my own name. Of course, there is a risk in any relationship of divorce or excessive influence from the bossy mother in law, I am aware of this.

I am happy to put in 30,000usd and in the worst case, I could walk away and shrug my shoulders towards “our” house, I do under stand that even in a potential divorce, farang always loose, any way no different to back home, the guy always get done over !! I know I am talking a lot about divorce, I am just trying to be pre-active if expectingly it did happen, I would not be ruined financially.

We want a home worth about 4.5m Baht, so about a 3.5m loan. My wife can own the house and the loan, I am happy to use money from my home country towards the repayments as well as my wife's income. The problem is that she has a cash income. She has a small business, very much cash.

She recently tried to buy a little Ford midget car by a loan arranged by Ford or a company they deal with. It was declined as she has no declared income. The owner of the Ford dealership had a chat and suggested she start a company, formally employer her self and 2 current casual staff and in 6 months time says she will get a loan easily.

Anyone have any opinions on this, if it is that easy? Of course, she would be paying tax and stuff now too.

[Time Traveller]

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Edited January 29, 2015 by Time Traveller

[Time Traveller]

Don't understand what you want people to tell you. If your wife wants the loan, follow the advice of the bank's loan officer. Otherwise, pay cash.

[Time Traveller]

deleted double post

Edited January 29, 2015 by Time Traveller

[paddyjenkins]

Would you like to know the pros and cons that i bandy about?

[Noi657]

Go on Paddy....

[Jaygee]

Sorry, let me be more clearer, if she was to go through all the hassle of setting up a company, formally employer the workers, she would also want to expand things a bit to help cove the new cost. That is fine.

My question is this. Would a bank take it seriously that she is employed by a company she owns, after it has been trading for only 6 months as a new identity. ??

[Noi657]

Cash is king! Until you need a loan or a mortgage!

[konying]

Not sure if advice given by ford owner is correct or factual .

Many thai do not pay any tax if earning under certain amount of money.

Bank and finance companies want to see 6 months bank statements showing regular income coming in.

She may well have a small business owning under the threshold amount but as long as she has history of deposits and savings, no reason why she would not be approved

[Jaygee]

Cash is king! Until you need a loan or a mortgage!

Yeah, true comment !

Konyink, thanks. In speaking to (unreliable) folks, there seems to be a belief that for an employee, they want 6 month, but for a small biz owner they want at least 2 years of active trading. the theory being if an employee looses a job, can go next door and get another one, not so easy for a self employed person. I have also been told, (again unreliably) that they don't care to much about this if they can see it is a real biz, with real products that are moving for a responsible price.

Maybe my question should also be, how much attention do they take of profit of a very small biz as apposed to wages paid to your self. Wouldn't it look funny, if my wife was employing someone to run it, she would pay max 15,000b a month, but for the purpose of the loan pay 50,000b a month in wages, even though it makes coin like that as profit. Any thoughts ?

[jonclark]

Do you work in Thailand? If you do you might be able to be a guarantor on the mortgage if the paper work checks out okay.

[Soutpeel]

Yes this is the way to go, then his wife doesn't need an income or even a job, but if he is employed here he needs to be aware that the mortgage will be assessed against his income, ie if is only making 30k/m in Thailand they will not be letting him co-sign on a thb 4.5 million loan, he wouldn't qualify as a guarantor

[happynthailand]

use SCB for a house loan

wife works they will loan 80% you pay monthly

wife no work 50% loan you pay monthly

we've used them for years,good people

[inzman]

Have you seen the interest rates banks charge for home loans, very very high. You would have to be very skint to have to use a bank loan here. They basically rob you.

[shirtless]

Why not buy something for a million baht, save yourself all the hassel.

[Gentmartin]

I'd suggest from experience that if your wife went legit under the umbrella of a properly set up company then in 6 months (providing of course she could show she was taking a big enough wage to cover the loan) then she would get approved.

If she was earning enough to get a mortgage for 3.5m, her salary would have to be in the region of 800,000Baht per year, and of course, her business has to make this much to pay her, plus her other employess and its costs and taxes etc. I'd estimate the business would have to turnover 4m a year Is she doing this already ? All ball park figures I know.....

Either way, if you're serious about getting finance for anything, you need proof of legit income. As others pointed out, cash is good until it comes to finance.

Oh, and I know you're looking at worst case scenarios regarding the future, so please bear in mind that any debt/liability she takes on after you're married is a shared debt in case of divorce.

Good luck with whatever you decide and BE CAREFUL !!! :-)

[konying]

Cash is king! Until you need a loan or a mortgage!

Yeah, true comment !

Konyink, thanks. In speaking to (unreliable) folks, there seems to be a belief that for an employee, they want 6 month, but for a small biz owner they want at least 2 years of active trading. the theory being if an employee looses a job, can go next door and get another one, not so easy for a self employed person. I have also been told, (again unreliably) that they don't care to much about this if they can see it is a real biz, with real products that are moving for a responsible price.

Maybe my question should also be, how much attention do they take of profit of a very small biz as apposed to wages paid to your self. Wouldn't it look funny, if my wife was employing someone to run it, she would pay max 15,000b a month, but for the purpose of the loan pay 50,000b a month in wages, even though it makes coin like that as profit. Any thoughts ?

I can not be certain of all banks criteria, but i own a business and whenever i borrow they ask for 6 moths statements only, never been asked or heard of anyone been asked for 2 years worth

Just go to another bank because as you know incompetence is not exactly new to this country.

[hellstens]

Take my advice!

Rent as cheaply as you can, and save the money for the house, and pay cash.

Better price less trouble, and you save a ton of money!

[greenchair]

I was earning good under the table money, but my partner had a job with a salary but the salary was too low. We went to 5 banks none would give us a loan. The last bank kasikorn bank. Gave us the loan in both our names. The house is in both names, but the land is in my partners name. We have never missed a payment and will be finished our mortgage in 2 years.

I am forever grateful to that bank for giving us a chance when nobody else would give a loan to a foreigner with no work permit.

Give them a try. They fixed everything for us

[georgemandm]

Don't want the to tell you this op but I will , that is why thailand is the way it is 3 rd world because of people like your wife work for the cash and not paying tax the place is a joke and that is why I would never live in thailand full time .

And she want to get a loan and pay a house of 3.5 mill thai bht what a joke som nam nar .

[paddyjenkins]

Don't want the to tell you this op but I will , that is why thailand is the way it is 3 rd world because of people like your wife work for the cash and not paying tax the place is a joke and that is why I would never live in thailand full time .

And she want to get a loan and pay a house of 3.5 mill thai bht what a joke som nam nar .

Som nom nah

[colinneil]

I am a farang have to have a big house WHY?

3.5 million home, you speak about having 1 million, you can buy a damn good house for 1 million.

[RigPig]

I am a farang have to have a big house WHY?

3.5 million home, you speak about having 1 million, you can buy a damn good house for 1 million.

Where? Nakon Nowhere.........

[AnotherOneAmerican]

No need to start a company,

If a Thai lady puts money in the bank on a regular basis, and can show the place she works from (market stall, etc.) they will give her a home loan. Even if she takes most of the money back out every month.

If she doesn't bank regular amounts every month for 6 months to a year, no chance.

I'm guessing she has no evidence of regular banking.

[Soutpeel]

Have you seen the interest rates banks charge for home loans, very very high. You would have to be very skint to have to use a bank loan here. They basically rob you.

So what are they then ? Oh wise one know it all ?

[Soutpeel]

I am a farang have to have a big house WHY?

3.5 million home, you speak about having 1 million, you can buy a damn good house for 1 million.

Where ? In the boonies in middle of no where

[AnotherOneAmerican]

I am a farang have to have a big house WHY?

3.5 million home, you speak about having 1 million, you can buy a damn good house for 1 million.

Where? Nakon Nowhere.........

Chiang Mai, photo taken last week (houses within 12Km of the moat).

Edited January 30, 2015 by AnotherOneAmerican

[AnotherOneAmerican]

Have you seen the interest rates banks charge for home loans, very very high. You would have to be very skint to have to use a bank loan here. They basically rob you.

Mine is 6.87%, not an unreasonable amount IMHO.

[RigPig]

I am a farang have to have a big house WHY?

3.5 million home, you speak about having 1 million, you can buy a damn good house for 1 million.

Where? Nakon Nowhere.........

Chiang Mai, photo taken last week (houses within 12Km of the moat).

2015-01-22 20.56.45.jpg

As I can´t read Thai I´ll have to take your word for it, it could be the deposit for all I know.

Seems awfully cheap even for Chiang Mai, as they say if it seems to good to be true.....

[Donnievino]

Just moved into new house today financed by a 103% mortgage to my Thai GF. She had a small cash business. Showed six months of monthly statements backed up by bank deposits of profits. They also look at bank balances so I gave her 300,000 baht to split between two accounts. One bank rejected the loan and another accepted. She also had rental income from a farm and house in Issan. I was not asked to guarantee the mortgage. Loan amount was 3.2 million.