Posted on: 22nd Oct, 2009 03:36 pm
I own a 2003 Homes of Merit 1680 sq ft, 3 bed / den, 2.5 baths on a leased lot in a community called The Ridge in Davenport Fl. The home is valued at 85,000 and I own it outright. I would like to get 55k to pay off my car loans and then lease the home to my son, so that I can buy a new home. Any possibilities? My mid credit score is 685.
i think the answer to that would depend on your income as much as anything else. you might also want to consider a debt consolidation loan if a refinance on your home isn't an option, it would proably save you a fair bit.
you said "if i own it outright" - i take it you don't own it in full at present?
how much is owing on the house?
you said "if i own it outright" - i take it you don't own it in full at present?
how much is owing on the house?
Hi WFREEMAN,
As you own the property outright, I don't think it would be difficult for you to get a loan. But with a credit score of 685, you will only qualify for a FHA loan. In order to qualify for a conventional loan, you would require a credit score of 740. You can lease the home to your son after that but you would remain responsible for the loan. You will have to make regular payments or else the lender would foreclose the property.
As you own the property outright, I don't think it would be difficult for you to get a loan. But with a credit score of 685, you will only qualify for a FHA loan. In order to qualify for a conventional loan, you would require a credit score of 740. You can lease the home to your son after that but you would remain responsible for the loan. You will have to make regular payments or else the lender would foreclose the property.