Would it help my chances of qualifying for a mortgage if my mom added me on the title to her house?

Question

My mom and uncle are on the title, and nothing is owed on the house. She said she'd add me if it'd help my credit (which it won't), but couldn't it help if I applied for a mortgage? Would my uncle also have to agree to adding me to the title?

*I mean, wouldn't it look good to the bank that I have assets?

Answer 1

Hey, FakePlastic:

First, if you're serious about qualifying for a mortgage, talk to a legitimate, established financial institution (Wells Fargo, B of A, or a local credit union) about what you can do to improve your chances. Talk to 3-4 bankers because they'll all have different tips ... and not all are scrupulous.

Second, contact your local consumer advocacy group. An example may be PIRG (e.g. Oregon PIRG, MontPIRG, etc.) or the local government regarding fair housing laws. They may not be able to answer your questions, but they can direct you to local resources who can.

Third, you're correct. Being added to the title will NOT help your credit.

Fourth, it will probably NOT help your chances in qualifying for a mortgage. First-time home owners often are eligible for many different state and federal programs including lower interest rates and reduced closing fees. If you demonstrate you already own property, then you're ineligible for these perks.

Finally, it's a messy affair to be added onto property that you don't actually have the "right" to own. It really could cause you more grief down the road. But, that's just my opinion.

Good luck.

Answer 2

No - it wouldn't help, but there are worse reasons not to do this.

If you mom does this, then she's gifted you part of the house, and she must pay the IRS a gift tax.

Depending on how the names are on the title (if it's mom OR uncle), then mom can add you - but if it's tenants in common, then both must add you.

In any event, don't get added, the tax bill alone will give your mom a headache, and it won't help you qualify for a mortgage.

Answer 3

Yes it would, but that is not a good idea. It means that if you should default on your mortgage and upon foreclosure sale the mortgage is not paid off, then the mortgage company can go after your mother's house to pay off YOUR mortgage. I suggest instead that you talk to your bank. Almost all banks and credit unions offer classes to teach people how to build their credit.

Answer 4

No, it would hurt your chances!!!
Applying for a first time home buyer or as a primary residence is easier to get a loan.
If she wants to add you to her account to show more $$$ in the bank helps, good credit helps, etc.

Answer 5

i think you might be better if u tried to qualify on your own. if you are not able to, then check your credit report and try to improve your credit. pay off highest debts first and cancel credit cards once they are paid off and not ones you have had for a while. sell junk around house u do not want or need. do not buy what do not need. tithe at church, too.