Farang co-signing house refinance for wife. It is possible?

[umbanda]

I think there are some similar posting here...but mine may be more specific.

I got negative answers from 2 different banks, but I will like to see if some members here have more info, or personal experiences with this.

My Thai wife wants to do what in the US is called debit consolidation refinancing her property.

The problem is that her income may be not enough to qualify, even if the value of her property is 3 times the amount of the refinancing loan, she is a business owner for more than 10 years, and she has more than a perfect credit.

I know that in the US will not be a problem, but looks like here it is.

Do you know a bank that will consider my retirement income in the calculations, with my name on title, or without?

Thank you.

[beachproperty]

My wife doesn't work, nor owns any business....BUT she has property and a couple of years ago we financed one of her properties with Siam Bank with me as the co-signer.

Caveat....they only gave us a 50% loan and only for 5 years (until I reached the age of 65) also requiring me to have life/medical insurance thru them.

It is possible ...hope it helps.

[umbanda]

My wife doesn't work, nor owns any business....BUT she has property and a couple of years ago we financed one of her properties with Siam Bank with me as the co-signer.

Caveat....they only gave us a 50% loan and only for 5 years (until I reached the age of 65) also requiring me to have life/medical insurance thru them.

It is possible ...hope it helps.

The loan will be under 40%, but.....I am 70. Anyway, we will talk with Siam. Who knows?

Thank you.

[jonclark]

My wife doesn't work, nor owns any business....BUT she has property and a couple of years ago we financed one of her properties with Siam Bank with me as the co-signer.

Caveat....they only gave us a 50% loan and only for 5 years (until I reached the age of 65) also requiring me to have life/medical insurance thru them.

It is possible ...hope it helps.

The loan will be under 40%, but.....I am 70. Anyway, we will talk with Siam. Who knows?

Thank you.

I hate to say it but your age may sadly count against you in this instance. Good luck anyway

[Rdrokit]

I did a house loan with wife with me as the guarantor but since I was over age 62 the bank wanted proof that if I died she would still get an income which for me was OK as if I die my wife will get a widows pension from my government.

[Rajhulmaheesh]

How old is your wife?

If she has good credit and all why does she need debt consolidation? Consolidating doesnt solve the problem sir.

Sir you really dont want in on this. You are 70. Why would you sign up for soemeone else debt? Makes no sense.

REreading the op post. Things ,as usual, dont add up.

[chilli42]

I will make an assumption that you are taking about mortgage on land ownership. Assuming your Thai partner meets the minimum qualifications for a mortgage a foreigner can be a gaurantor - assuming you can provide satisfactory documentation of income/assets. This is useful when the bank feels the primary borrower may not be able to meet payment - boarder line cases. You are not really a co-sign on the mortgage. As a gaurantor, you are financially responsible should the primary borrower not be able to meet the payment obligations. Neither the mortgage or the property are in your name. I have done this several times with my wife so I am certain it's possible. As I say, the benefit is that increases the amount that the primary borrower is able to take on.

Consolidation of debt at more favorable rates nearly always makes sense. I am sure you are smart enough to work out the savings involved and determine if it's worthwhile. The risk that others mention is clear. If the borrower defaults the bank will be coming after your income and assets and even if you manage to make good on this obligation the assets you are paying for will never be yours.

[umbanda]

How old is your wife?

If she has good credit and all why does she need debt consolidation? Consolidating doesnt solve the problem sir.

Sir you really dont want in on this. You are 70. Why would you sign up for soemeone else debt? Makes no sense.

REreading the op post. Things ,as usual, dont add up.

Did you looked at my question?

I asked if I can do it, not if I do it or not.....

That's is my problem, but....anyway.... thank yo for your concern about my business.

[starship]

I've sent you a p.m.

[dfp]

We got financing through Siam Commercial Bank at the time we purchased our house. My wife has no income so the loan was granted based on my income at the time so in the loan document I have only signed on the last page as guarantor.

At the time I was 62 years old, but we managed to get a loan period of 15 years based on the age of my wife.

We have not done any re-financing, but we have managed to re-negotiate the rate of interest to half for a one year period and for the following 2 years it will lower than what we paid previously. Before we paid 7.1% p.a. and now it is down to 3.5% p.a. It is expected that after the 1 year period the rate will be 6.1% p.a.

The paper work just for changing the rate of interest was immense and the whole process took something like 14 days.

As the banks do not advertise about negotiating interest rates, I hope it can help other members here at TV.

[Rajhulmaheesh]

Som Tum for thought.

If the bank thinks your wife is a bad risk.....its business.

Why do you think she is a good risk?

Leave out you got the hots for her. Guarantors or co-singers are for those who are ,in high probability, not gonna pay.

Just pay off her debts and let her pay you back.........................hahahaha!

Seriously SIR. You are married just pay off in full her debts. Whats hers is yours and whats yours is hers.

A wife debt free is sexier and more attractive. Make your twilight years one long ectasy ride.

Edited February 5, 2015 by Rajhulmaheesh

[umbanda]

Thank you. Most responses were very useful.

On the last 2 days we visited 5 banks. In all, the answers was that I cannot co-sign because I do not work here, and the property is a single home and not a condo. Also age limit for Farangs and Thais is 66 years old, and I am 70. My wife is 48, and the loan can be for 18 years just on her name.. Because the LTV is very low, just 27%, and her credit is very good, she was approved alone even with not good income PTI ratio.

That was my initial concern, and the reason of my question.

SCB interest is 11 to 12 %...too high..and we also didn't liked the service. Government Savings Bank interest is 7.75%, but with a lot of paperwork.

Bangkok Bank interest is 8%..but only can do it for 10 years because will be a personal loan over the property and business, not refinancing. Bangkok Bank even offered more money than we were asking. Something to think about. . Bangkok Bank service was very good and very professional, direct with the manager, with not so much paperwork need it.

All loans payments includes a Life Insurance, that was a plus, because in case of her death, the property and the business backing the loan will go to my wife's only son free of debt, and we are happy with that.

We will ask bank KTB next week to see if we can get something better. I do not know about good deal with other banks.

Asking for referrals.

Thank you again guys. I hope this can be useful info for some.

Edited February 5, 2015 by umbanda

[Rdrokit]

Had our loan through Krung Thai Bank. Very good service and it was a low interest loan because it was over 1 million baht and pay off in 10 years. Started out at no interest for 6 months than it went up .25% every month until it maxed out at 7 percent. We paid off the loan early without any penalty.

[Rajhulmaheesh]

So simple. You be her bank and charge her half the interest the banks would have. You willing to co-sign. Whats the difference.

What im hearing is op doesnt trust his wife will pay back either.

Edited February 5, 2015 by Rajhulmaheesh

[umbanda]

So simple. You be her bank and charge her half the interest the banks would have. You willing to co-sign. Whats the difference.

What im hearing is op doesnt trust his wife will pay back either.

Who said that I have 3 millions to lend to my wife?....If I have it I will GIVE to her if she need it....not lending....and it is not your problem.

By the way...who ask for your opinion about my relationship with my wife? I really think that SOME TV members here are projecting its personal problem in others, just to feel better about its sad situations. Get a life!

I also wants to believe that MOST TV members are mature and happy people that likes to share its experiences, and to be helpful to other if its can.

Edited February 7, 2015 by umbanda

[umbanda]

Had our loan through Krung Thai Bank. Very good service and it was a low interest loan because it was over 1 million baht and pay off in 10 years. Started out at no interest for 6 months than it went up .25% every month until it maxed out at 7 percent. We paid off the loan early without any penalty.

Thank you. That's is a good info. We are planning to talk with them next week.

[umbanda]

I will make an assumption that you are taking about mortgage on land ownership. Assuming your Thai partner meets the minimum qualifications for a mortgage a foreigner can be a gaurantor - assuming you can provide satisfactory documentation of income/assets. This is useful when the bank feels the primary borrower may not be able to meet payment - boarder line cases. You are not really a co-sign on the mortgage. As a gaurantor, you are financially responsible should the primary borrower not be able to meet the payment obligations. Neither the mortgage or the property are in your name. I have done this several times with my wife so I am certain it's possible. As I say, the benefit is that increases the amount that the primary borrower is able to take on.

Consolidation of debt at more favorable rates nearly always makes sense. I am sure you are smart enough to work out the savings involved and determine if it's worthwhile. The risk that others mention is clear. If the borrower defaults the bank will be coming after your income and assets and even if you manage to make good on this obligation the assets you are paying for will never be yours.

Thank you. That's exactly what I am trying to do. I am not interested in be on title. It is my wife property for many years. The banks we visited said that I cannot co-sign, but I think that it is because my age. I didn't asked if that was the problem. I will, just to be sure.

That is the main difference with the US. In the US borrowers can get loans at any age, and life insurance is not mandatory, and after death the heirs will have to pay the loan balance. Here, age limit is 66, and with life insurance included the property will go to the heirs free of debts.

I think makes sense.

[Chuckles78]

Me and my wife got turned away from the first 2 banks we tried (because she doesn't work) but 3rd bank SCB was totally opposite.

We got invited to the managers office he talked to us and offered finance providing I provide proof of income from my EU job. Loan is 50% the rest we pay.

[umbanda]

I've sent you a p.m.

Thank you. After our final "shopping" next week I will contact you if any questions or news.

[Chuckles78]

Good luck [emoji106]