My father is paying for this home, He is the only one in the mortgage.....Can he add me to This Contract and then in a few months after paying on time every month, just remove his name from the contract and keep my name only?
Thanks for your help!
2006-08-14 22:11:48 · 15 answers · asked by Taurusman 2 in Business & Finance ➔ Renting & Real Estate
You would have to refinance to remove your Father's name from the mortgage. If you want to be on title you could do a quit claim deed after the mortgage has been recorded.
As far as your credit is concerned. Pull your credit and see what is on there and clear it up. If there are judgements that is a huge problem and I would not put your name on title because the judgements could attach to the property. If you have charge offs, call the creditors to see what you can do. If your credit is really bad and you need to file bankruptcy , again do not put your name on title. You will not be able to obtain a mortgage until a minimum of 1 year after the bankruptcy has been discharged.
I'm not sure how your father would feel about this but one thing you could do is refinance in about 6 months (with your father's name only, again) take out any equity that has been built and pay off any old debts. I would suggest an Adjustable Rate Mortgage (ARM) if you do not plan on keeping the mortgage for more than 1, 2, 3 or 5 years. The interest rates are lower. If you need more information on these types of loans contact the lender.
Hope that helps!
2006-08-15 01:47:16 · answer #1 · answered by 10 pts for me? 4 · 0⤊ 0⤋
First things First, start being pro-active on your credit report. Get copies of your credit reports from the three major reporting bureaus for FREE at http://www.annualcreditreport.com
But, No, lenders do not allow people to be added to a mortgage note. You would need to be Quit Claimed onto the deed, and then refinance the mortgage in both of your names.
I would suggest going with a 2/28 ARM program,, after 12-24 months of ON-TIME payments, and pro-active work on your credit reports, your credit scores will come up over that time, and you can refinance into something more permanent and with better interest rates. This is sometimes referred to as a 'band-aid' loan.
2006-08-15 10:05:26 · answer #2 · answered by ReggieWjr1 4 · 0⤊ 0⤋
No, it's not possible to add and remove borrowers from a mortgage.
While there are lenders who specialize in mortgages for people with poor credit the fees and interest rates are insane. In most cases, the borrower winds up in far worse financial condition than when they started.
Your best bet would be to start out renting and clean up your credit over the next couple of years. Your credit rating won't affect rental rates, though it may have an impact on being accepted as a tenant. Your credit rating absolutely will affect your mortgage payments though! Someone with bad credit may wind up paying twice as much as someone with good credit.
2006-08-15 07:07:50 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Bad Credit You Can Still Get a Mortgage to Buy a House
By: John R Blakefield
This article might help you with your question. The site also is a good research site too,
Good Luck
2006-08-15 05:30:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you have a very bad credit, the sensible thing to do is to pay off your debts first. Seriously.
Your debts is not something that you can just run away from. Take ownership of it. You will be surprised how much you waste on paying penalties, long accumulated interests, and high interest rates. It can work out to many millions in your lifetime.
If you are not conviced, ask your bank. $1000 credit card bill with 24% annual interest will become $1million in just 30+ years.
2006-08-15 09:06:13 · answer #5 · answered by fernando_hal 1 · 0⤊ 0⤋
Check with your lender and see what they have to say. Get a copy of your credit report and see if there are any items on it that can be cleared up quickly. There are lenders that are willing to work with people who have slow credit. If your father needs to be on the mortgage with you, make sure that you keep payments up to date for the first year. Usually you can reapply for financing at that time if your credit score has improved enough to get a loan on your signature only. Good Luck!
2006-08-15 05:20:02 · answer #6 · answered by mom 4 · 0⤊ 0⤋
See if they have the Accorn Housing program in your area, it's set up for people who have bad credit or no credit who want a home. You can't just take your father off the loan, they would refinance the house then
2006-08-15 08:24:52 · answer #7 · answered by dazedandconfused 2 · 0⤊ 0⤋
No he will have to remain as co-signer for the duration of the mortgage. He will also be the listed owner. If your credit is very bad they will not likely even let you have your name on the mortgage at all (even with co-signer).
2006-08-15 05:21:26 · answer #8 · answered by Nicky 4 · 0⤊ 0⤋
Sorry...the lenders are not in the market of bettering your credit report. They want better security than putting their chances in a flaky pot. Your poor credit rating did not come from you having a reputation of paying your bills.
2006-08-15 05:18:56 · answer #9 · answered by Robere 5 · 0⤊ 0⤋
i dont think so. they want to be sure there is a person or people with a good enough credit rating and since urs is crap they wont let it go under ur name.
2006-08-15 05:16:28 · answer #10 · answered by supraman126 4 · 0⤊ 0⤋