Can I use my sister's excellent credit, get a mortgage in her name, pay it (in her name) for a few years, then "buy" the property from her for e.g. $5.00, and assume the mortgage payments in my name?
2007-02-25 11:59:46 · 12 answers · asked by claveman 1 in Business & Finance ➔ Renting & Real Estate
she can buy a property and rent it to you, thus establishing a credit line. "using" someone's credit is not legal nor will any mortgage company allow for it
2007-02-25 12:02:19 · answer #1 · answered by austin_texan 3 · 0⤊ 0⤋
Let me get this straight: The mean lender won't give you a loan because when they looked at how you've handled debt in the past, they realized the chances that you would repay the loan were slim to none. Keep in mind, lenders want to lend money. The don't make a profit saying no.
So now you want your sister to get a loan and you'll pay her the money. But here's the thing: The bank won't give you the loan because there experience with people like you is that the loan won't be paid. And as much as you might think that you'll be different, face it, you won't. So essentially what you want to do is put your sister in a situation where her credit will ultimately be as bad as yours.
Are you really that selfish? How could you ever even think of putting her in that position?
Your sister has worked hard to maintain good credit. Rather than try to ruin that, you should try to emulate that. Ask your sister for advice on how to get your credit in order. (In other words, ask your sister to help you help yourself, rather than asking her to bail you out.) Once you accomplish that, then it is time to purchase a home. On your own.
Stop wasting time trying to scam the lender and your sister and work on cleaning up your own situation.
2007-02-25 12:37:29 · answer #2 · answered by CJKatl 4 · 0⤊ 0⤋
The proper way to do this is for your sister to apply for a mortgage in her name. If it is an FHA loan then there is a mortgee letter in 96 which validates what I am going to suggest.
Once your sister owns the home, (she will have a deed and a mortgage) then you simply buy it from her "subject to" the existing debt or mortgage. Find a real estate attorney that understands what subject to means. You are not assuming the loan but taking it subject to, which means, you get the mortgage payment and send it in. You can deduct the taxes on your income tax but your sister is still liable until you refinance the loan out of her name.
If you have an FHA mortgage then you can do what is known as a Streamline Refinance. This is in the mortgagee letter in 96 which states that as long as you are on deed and have made 6 payments in a row then you can refinance the house you own to a lower FHA payment loan. Simply call lenders and ask them if they do FHA streamline refinances.
If you do not have a FHA loan, then you want to make at least six payments in a row, before refinancing and depending on your credit situation it could be as many as 12. In any event, you must have your sister's cooperation to initially apply for the loan in her name voluntarily. You can't use her credit like that without her permission.
Contact me here if you have further questions.
Good Luck
2007-02-25 12:11:36 · answer #3 · answered by teenriodoll 3 · 0⤊ 2⤋
FHA allows for a co-signer, as long as they are a blood relative. This puts both of you on the loan and should help your credit improve. Just be sure to have on time mortgage payments. Go to a HUD approved broker, they can handle it for you. I have done many of these loans, they are not that hard, and FHA rates are as of last Friday 5.875 to 7.00. That should keep your payment low. Good luck Also if you are making the payment and she is not, it will not hurt her in financing something else, as long as she can show cancelled checks from you then she can get a loan if she needs one. I have done this many times as well. Again good luck
2007-02-25 12:12:01 · answer #4 · answered by Dwayne S 2 · 0⤊ 0⤋
If she's willing to buy the property and let you pay for it or rent it to you, or willing to cosign, then you might be able to take advantage of the fact that her credit is very good. If you do that, be sure to get something that you know you can pay for.
Depending on the mortgage, it might or might not be able to be assumed by you and transferred to your name after a period of time.
2007-02-25 12:08:40 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Bad idea for her, it will show up as a large loan on her report, and can effect her ability to get a car or home loan, even with a perfect credit score, lending companies check to see how much you owe, so it would appear that she already has a large loan, she would not be able to secure another loan for her own benifit, and even one late payment, by you would have an adverse effect on her credit score, this would be a terrible strain on your relationship, can you find another way to secure a loan? Too many family members ruin a good relationship over securing loans.
2007-02-25 12:11:44 · answer #6 · answered by Kimberly H 4 · 0⤊ 0⤋
Your sister can purchase the property as a NOO property & rent to own it to you. Or she can sign with you as a non-occupying coborrower. Let me know if you would like more details.
Regards,
Anthony
anthony@lowermydebtnow.com
www.lowermydebtnow.com
2007-02-25 13:23:09 · answer #7 · answered by lowermydebtnow.com 2 · 0⤊ 0⤋
No because you must had bad credit. It did not get bad by itself you made it bad. So all you will do is mess your sister's credit up too.
2007-02-25 12:08:15 · answer #8 · answered by Anonymous · 1⤊ 0⤋
The name for what you are ferring to is FRAUD, and it's punishable by jail time and huge monetary fines.
2007-02-25 13:43:01 · answer #9 · answered by Anonymous · 0⤊ 0⤋
BAD MOVE ON YOUR AND HER PART,
HER PART IF YOU CAN'T OR WON'T PAY--SHE GET HER CREDIT SMASHED...
BAD FOR YOU IF SHE DUMPS YOU-- A FALLING OUT BWT YOU TWO.. SHE FORCES A SALE ECT...
SHE MAY DIE--THEN WHAT?
TOO MUCH AND TOO MANY IF'S...
2007-02-25 12:29:44 · answer #10 · answered by cork 7 · 0⤊ 0⤋