If the parent would be normally be eligable for the best interest available will the same interest rate be available if they were co-signing on the mortgage.
thanks in advance
2007-04-03 15:01:33 · 7 answers · asked by Tommy12oz 2 in Business & Finance ➔ Renting & Real Estate
There are only a very few programs which allow a non-occupying co-borrower, but FHA is one of the best IMHO. The interest rate is determined by the qualifications of the highest earner--in this case probably your parents. The interest rate would be about 6% to 6.5% today. Contact a lender that is FHA approved. I like Julie at http://primelendingonline.com
Good luck.
2007-04-03 16:35:36 · answer #1 · answered by Anonymous · 0⤊ 2⤋
There's only a few decent products that allow co-signors. Typically, FHA has been the easiest to do, and allows the lowest downpayment at 3%, which can also be a gift from Mom and Dad. Fixed rates on those are about 6.00% right now.
Conventional loans from Fannie Mae and Freddie Mac, your normal 30 year fixed rate loans, also allow co-signors, but require at least 5% down, and the downpayment must be your money, not from Mom and Dad. One other major difference from FHA, you personally usually have to meet some minimum debt-to-income ratios. If you qualify for these, it's about the same 6.00% right now for a 30 fixed.
All that being said, it's co-signing doesn't just wash away your bad credit. It is definitely possible for your credit to be so bad, you can't get approved with you on the financing at all. Having tons of open collections, charge-offs, judgments or tax liens can keep you off the loan. If that happens, only thing you can really do is have your parents buy it as an investment and you pay rent, or you don't buy and rent elsewhere.
So. final answer to your question is: Yes, provided that you and your parents combined fit the guidelines, you should be able to get just about the best rates available. But it's not guaranteed, as your personal credit and income remain a factor.
2007-04-03 15:53:52 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
no, the interest will not be the same interest as the parents as the parents will usually have better credit and usually get a better interest rate, it just depends on your credit, the interest rate might come down some if the parent has good credit, but it wont be as low as the parents rate would be alone
2007-04-03 15:07:03 · answer #3 · answered by enochsangel 4 · 0⤊ 0⤋
Generally if the parent co-signs the interest should not change.
2007-04-03 15:05:08 · answer #4 · answered by MajorTom © 6 · 0⤊ 1⤋
Can't answer this question as asked. Many other factors must be taken into account, such as LTV, debt to income ratios, credit history, and the like.
2007-04-03 15:05:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes. Only the cosigner's credit is considered, and they are responsible for the loan, just as if you weren't even on it.
2007-04-03 15:05:24 · answer #6 · answered by ed 7 · 0⤊ 1⤋
it will have the same intrest if no one cosigns
2007-04-03 15:04:43 · answer #7 · answered by reeseepiecie 4 · 0⤊ 1⤋