My mom wants to buy a house but sign the house over to me once she's done. My credit isn't the greatest so me financing the home would have a sky high rate. Of course she wouldn't go in stating her purpose to the lender. Is this something that is possible. I wouldn't want it to remain in her name or better yet, on her credit report. I'm definitely capable of paying what needs to be paid. Recently divorced, so mom wants to help me and my children out. Any help would be appreciated. Thank you!
2007-03-23 12:56:02 · 6 answers · asked by Beautifull_princess 2 in Business & Finance ➔ Renting & Real Estate
There in no way your mother can qualify and get a mortgage and allow you to assume it with her coming off the mortgage as well as her credit report.
The best thing to do is call a mortgage broker,see where you stand. After completing an application, running a credit report they will be able to tell you your interest rate and the loan programs you are qualified for.
If at that time you find the rate too high you can always bring your mother in to help, but find out where you stand first.
If the situation is that you and your mother can go on the loan together that would be better for you.
If it is that your mother would stand a better chance of getting a loan on her own you have a few decisions to make.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-23 13:10:05 · answer #1 · answered by Skip 6 · 0⤊ 1⤋
This is a shaky proposition. First of all, your mother would be committing bank fraud by stating she will be the occupant of the dwelling, when in fact, no such thing will occur. Secondly, there is no legal way you can get your mother's name off of the mortgage documents unless the loan she took was assumable. However, you would still have to qualify to assume the loan. You are better off going to a reputable lender and discussing the situation with them. Believe me, if there is a way they can get you into that house, they will. In any case, it won't hurt you to talk to them - you can always walk away. One more thing - do not let them sell you an Interest Only Loan, an Option ARM or a B/C loan (loan for people with dubious finances or credit histories - always at an exhorbitant interest rate).
2007-03-23 13:19:56 · answer #2 · answered by jhartmann21 4 · 0⤊ 1⤋
What is it with all the fraud questions. A mortage is either assumable or it isnt......almost all FNMA mortages today are not assumable, and if it were, you cannot automatically take it over. You still need to be approved.
One legitimate option would be to go to you local BANK, not a mortgage company. Look for a small local cooperative (in the name) bank or Credit Union. Ask about getting a mortgage with your mom as a "Guarantor". In this way you buy the home and get the loan and your Mom only comes into the picture if you fail to make the payments.
Good Luck
Ed
2007-03-23 13:15:03 · answer #3 · answered by myfinancialmentor.com 2 · 0⤊ 1⤋
Only if the loan is written to allow such, otherwise it will not fly. Many have tried this for similar reasons and now with mortgage financing tightening its belt due to defaults, it is imaginably even a tighter negotiation tactic to succeed with. Most mortgages are not transferable unless co-applicant with option to assume approved by lender.
2007-03-23 13:20:05 · answer #4 · answered by Joseph H 4 · 0⤊ 0⤋
Perhaps you can consider a "land installment", but make sure the mortgage loan is transferrable. It would also require the expertise of an attorney. While you are under the agreement with your mom, you can work on re-establishing your credit.
Good Luck
2007-03-27 03:41:09 · answer #5 · answered by Honeyluv 4 · 0⤊ 0⤋
if make the payment in her name...............................
work on improving your credit.....................................
later ask her to but you on the deed..........................
refinance it in your name....................
2007-03-23 13:42:27 · answer #6 · answered by ron d 3 · 0⤊ 0⤋