Using our good credit to get a loan

Hello,

You meant to say that your son will buy the home and you will get the loan? At your age, you can very well avail the reverse mortgage as it is meant for senior citizens only. But, you being the borrower remains the owner of the property as per the clause of reverse mortgage. In that case, your son and DIL can live with you in this new property. And as your son is facing short of money now, he can pay back the loan amount later as long as you occupy the home. Regarding the loan title transfer, while taking the loan, talk to the lender if he would allow you the provision of transfer later. Otherwise you can transfer it after a year or two through a quitclaim deed.

Well, you can surely get a mortgage at the age of 62. You can look out for lenders providing reverse mortgages. The best thing about such loans is that you don't need to make monthly payments on them; rather if you sell the property any time during the loan period or abandon it, the lender would ask for the payments and that's when you require paying the entire loan in a lump sum amount. Otherwise, when you are no more, and the loan period isn't over, your heirs will have to pay it off or the lender will sell the property to get back the money he has invested.

Therefore, your son need not make any payment currently. As far as transferring the loan is concerned, I think it is not possible because your son's age isn't what the loan eligibility involves – I mean he is not 62 after all.

Good luck :)

We have a home, so this would not be our home. We were just thinking about getting the mortgage for them in our name and they would be responsible for the monthly payments.

I wouldn't consider a reverse mortgage, as we have another son, and this wouldn't be fair to him if this loan had to be paid off with our current home's value at our deaths (our home will be paid off in two months).

The main reasons we wanted to get the loan is he/DIL can't get it because of their bad credit and to help them get a lower interest rate and transfer it ASAP into their names, so we would not be responsible.

Dee

hi deega,

you can take a mortgage in your name and let him make the payments on your behalf and after their credit improves they can refinance the loan into their names. but the lender will be getting the payments on your behalf and loan documents will be in your name.

to get a mortgage other than reverse mortgage you will have to qualify as per requirements set by lenders regarding credit, income, dti for borrowers.

"can we even get a mortgage at age 62?" --> you can get a mortgage at any age if you can qualify as per set standards.

"could we get it transferred in their names in a year or two? " --> to transfer the mortgage after a year or two they will have to refinance it in their names. and that time also their financial profile will be checked and if there is no improvement then they will have difficulty in refinancing.

miller

"We are retired. Our son lost his home last year to foreclosure after he lost his job. He and DIL have been renting for the last year"

"Could we get it transferred in their names in a year or two? "

Deega you mentioned that he lost his job and that led to foreclosure of his home. Does he have a job now? If they intend to get the mortgage refinanced in their name after 2 yrs. then at that time lenders will look at job status for the last two years. So you need to make calculations on when it will be appropriate for them to refinance the mortgage.

In these two years they also have to work upon their credit score and try to improve it by making timely payments on all accounts. After 2-3 years they will have to check how much improvement has occurred. And then only take the decision on whether to refinance the loan or let it remain in your name.

Thanks
Blue

Hello Deega,

As you are not interested in the reverse mortgage, hence, the best thing to do now would be that you can ask your son /DIL to wait for some time till their credit score improves and then they may opt for loans to buy a home.

Deega, I talk to a lot of people in your similar situation and I always tell them one thing. No Way, with one exception.

The only exception would be that you can afford to pay for all costs associated with owning the new home if your son is unable to pay at some point in the future.

What if something happens and your son can't pay? It's a big risk and I talk to people all the time whose credit scores are incredibly messed up because they helped a loved one with financing and the loved one didn't make the payments.

John Crenshaw
__________________________________
Honest Mortgage Info and Tips - Truthful Lending dot Com

Hello John,

I think what your talking is true. But then, as you know Deega is retired and the age is 62. He does not want to opt for reverse mortgage. But do you think there are any other options available to him to protect himself as well as help-out his son?

Hi John,

Welcome to our community.

Thanks for sharing your knowldege with the community.

Hope you will enjoy being here.

Good luck :)