Posted on: 20th Apr, 2010 09:21 am
My grandson will get some money when he turns 18 and has no credit. He and I plan to put $70,000 down on a home. I have bad credit and he none. Will he be able to buy a home on his name, he has a disability income of $670 a month. My income is $1,200 a month. Should I file bankrupcy first and try to buy the house in both our names? Plan to buy house in 14 months.
elma, there are a couple of things that will make buying a home difficult for the two of you. first of all, concerning your grandson...his lack of credit is a big hindrance to a lender granting a mortgage. there are programs that allow for people to provide alternative sources of credit, but at the age of 18, he wouldn't have had time to establish those. among the types allowed are rent payments, auto or renters insurance bills, utility bills, local stores or bodegas where credit is extended to people...places like that. the minimum required period of time for someone to establish credit and use those sources is usually 24 months - at 18, he hasn't had time to establish a 24 month history with anyone.
with your credit being "bad" - though that doesn't tell us your credit score, i'd have to think that it wouldn't be sufficient to allow a lender to help you.
what i don't get at all is the bankruptcy question. do you honestly think that eliminating whatever debts you have in bankruptcy would be helpful in your effort to buy a house? i promise you - it wouldn't help.
each of you needs to establish a favorable credit record in order to become borrowers and purchase a home. that might just mean putting his funds in an account that won't be disturbed until you're ready, which is probably going to take a full 2 years.
he would need to begin establishing credit records right away (he can also do a secured credit card, but not until he's 18)...oh yeah...so can you.
you also need to begin to establish favorable credit records to counteract the bad that's out there. and whatever money you owe, you should pay off as soon as you are able, if that's possible.
with your credit being "bad" - though that doesn't tell us your credit score, i'd have to think that it wouldn't be sufficient to allow a lender to help you.
what i don't get at all is the bankruptcy question. do you honestly think that eliminating whatever debts you have in bankruptcy would be helpful in your effort to buy a house? i promise you - it wouldn't help.
each of you needs to establish a favorable credit record in order to become borrowers and purchase a home. that might just mean putting his funds in an account that won't be disturbed until you're ready, which is probably going to take a full 2 years.
he would need to begin establishing credit records right away (he can also do a secured credit card, but not until he's 18)...oh yeah...so can you.
you also need to begin to establish favorable credit records to counteract the bad that's out there. and whatever money you owe, you should pay off as soon as you are able, if that's possible.
Hi Elma,
You have not mentioned about credit score. There are few factors which the lender follows before providing loans. Firstly, credit score, job stability and also source of income. The minimum score required is 620 however, there are companies who provides a credit of 580. About your grandson it is really difficult to get a loan. All you can do is wait for sometime and try to improve your credit score, utilize the money that you have to some business, then try for a loan. Regarding bankruptcy, I did not understand why you want to file bankruptcy. Even if you file bankruptcy then also it will not help you to get a loan. Best of luck.
You have not mentioned about credit score. There are few factors which the lender follows before providing loans. Firstly, credit score, job stability and also source of income. The minimum score required is 620 however, there are companies who provides a credit of 580. About your grandson it is really difficult to get a loan. All you can do is wait for sometime and try to improve your credit score, utilize the money that you have to some business, then try for a loan. Regarding bankruptcy, I did not understand why you want to file bankruptcy. Even if you file bankruptcy then also it will not help you to get a loan. Best of luck.
