Posted on: 21st Jun, 2011 06:50 am
I had to move from Chicago to Charlotte for a new job and had to undergo a shortsale of my home in Chicago. Now, I am interested in buying a new home in Charlotte and have run out of all options to qualify for a conventional or FHA or conforming loan of any sort. I did get some ridiculous non-conforming 1 year ARM loan which I know I do not want to do. Here is my question.
Can my sister, who has a decent credit help me secure a mortgage? I know she cosigning will not help because along with my credit, the bank will only look at the lowest of the two. I also do know that she can qualify for a mortgage and add me along with her name in the title. I can also oblige to make the monthly payments until I can qualify for a mortgage by myself (Maybe in 2 or 3 years ). Is this a possibility? If yes, since I am a co-owner of the house, will I be able to deduct the property taxes and the interest paid towards the house during the initial 2 or 3 years? Though I will be making the monthly payments, the mortgage will officially be in her name and it would look as thought she would be making the payments. Anyone who are aware of my situation, I would appreciate an accurate answer ! Thanks for reading.
Can my sister, who has a decent credit help me secure a mortgage? I know she cosigning will not help because along with my credit, the bank will only look at the lowest of the two. I also do know that she can qualify for a mortgage and add me along with her name in the title. I can also oblige to make the monthly payments until I can qualify for a mortgage by myself (Maybe in 2 or 3 years ). Is this a possibility? If yes, since I am a co-owner of the house, will I be able to deduct the property taxes and the interest paid towards the house during the initial 2 or 3 years? Though I will be making the monthly payments, the mortgage will officially be in her name and it would look as thought she would be making the payments. Anyone who are aware of my situation, I would appreciate an accurate answer ! Thanks for reading.
if you do your suggestion, you can make it work. if she can get approved for the home loan, you want to make sure that you dont do any fraud, such as purchase a owner occupied residence, but your sister will not live there. that is fraud. you might have to purchase the property with more down payment using non owner occupied loan. if you fail to disclose that you purchased a owner occupied residence but dont live there, the bank can find out and call the entire loan due and or legal action against parties. just and fyi that most people dont understand the repercussions. so back to your question, if you do it right and she is the one on the loan, you can be added to title by quitclaim and then make the payments on taxes and insurance. once you have decent credit and income to prove, then you would be able to refi the home. you would need 12 mos cancelled checks showing you paid the mortgage and that you are on title. most lenders will take this as a refinance. good luck.