Posted on: 10th Aug, 2011 08:02 am
We are in the process of buying a home with my mother in law..Looking at a home for around 225000 and have 105000 as down payment from sale of her home..My question is she has excellent credit and my husband and I range around 620's and already own a home with that we will have to sell also.. What would be the options of morgage can we get a good intrest rate with our credit and the large down payment ?? We also have the option of having her as a co-signer as she has A+++ credit but how would we then be placed on the morgage and what happens when she passes away and we have a 30 year loan..and what about the deed can we have all three names on it?
The last is the easiest part, so I'll get that out of the way first. Of course, there's no reason why three parties cannot own a home.
With your 620 scores, you aren't going to qualify for an y conventionally priced loans, so you'd have to go with FHA or even a portfolio lender (read this as a local bank or credit union, generally, for they will typically look at you differently than the larger lenders would).
She couldn't be a cosigner on a conforming loan, but with FHA and a potential portfolio deal, that's a yes and a maybe. The down payment is great, but it won't get you the best of rates because of your scores. Smaller shops might fight on your behalf, but be prepared to have a loan rate a bit higher than what's advertised. The ads are always for the top tier of borrowers based on credit.
With your 620 scores, you aren't going to qualify for an y conventionally priced loans, so you'd have to go with FHA or even a portfolio lender (read this as a local bank or credit union, generally, for they will typically look at you differently than the larger lenders would).
She couldn't be a cosigner on a conforming loan, but with FHA and a potential portfolio deal, that's a yes and a maybe. The down payment is great, but it won't get you the best of rates because of your scores. Smaller shops might fight on your behalf, but be prepared to have a loan rate a bit higher than what's advertised. The ads are always for the top tier of borrowers based on credit.
Welcome nurseV,
With a credit score of around 620, you will be able to qualify for FHA loans. However, if you have a co-signer with excellent credit rating and income, then you will be able to qualify for a conventional mortgage.
After she passes away, you and your husband will have to refinance the mortgage in their names. This will help you in transferring the mortgage in your names.
With a credit score of around 620, you will be able to qualify for FHA loans. However, if you have a co-signer with excellent credit rating and income, then you will be able to qualify for a conventional mortgage.
After she passes away, you and your husband will have to refinance the mortgage in their names. This will help you in transferring the mortgage in your names.
Adonis, rare is the lender who will allow a cosigner to be added to a conforming loan for the purpose of making it better. Not only that, but pricing is always based on the lower of the credit scores, so there will be a pretty big hit on a loan with a score as low as 620, if you can find such a loan to begin with.
NurseV, stick with FHA lenders.
NurseV, stick with FHA lenders.