This topic contains 4 replies, has 1 voice, and was last updated by Anonymous 7 years, 9 months ago.
- April 27, 2011 at 9:20 pm #199731
My wife and I are thinking of buying our first home and starting a family this year. She has bad credit from college that we are starting to take care of, 580 now. My score is about 700 now after buying two new cars to build credit. Together we make about $160,000. Because her credit is bad and mine is building would we have a problem getting a loan with no money down? Been renting forever at the same place but we are tired of giving our $2000 rent away to pay our landlords mortgage.
Sincerely time for our own house
- April 30, 2011 at 2:21 am #415865
Perhaps but you need to just call local Lender’s and ask the question. I suspect it will be a lot more difficult to find a lender in that type of a situation.
- April 30, 2011 at 2:21 am #415866
The key to this deal would be the language used in the ownership papers and any existing mortgages. If you own the house free and clear, your sister could just require an agreement between the two of you so that in the event you fail to make payments on the loan, she gets the agreed upon share of your portion of ownership, such that she can buy you out and pay off your loan. If she is not able to qualify for a loan to buy out that portion of the property in the event you default, she should not agree to the deal.
The same attorney who handled your purchase or property transfer could advise you on how to do this.
- April 30, 2011 at 2:21 am #415867
uh….this is simple. Two owners; 2 signatures. Period.
No matter how you hold title. Each owner must pledge his fee simple ownership interest in order for a property to be held as security for a loan. In many but not all cases, the lender will want both owners to sign the mortgage; only your lender can say aboout that.
- April 30, 2011 at 2:21 am #415868
Yes, she can be on the deed but not on the mortgage. She will have to be at the closing.
You must be logged in to reply to this topic.