if I incorporate would I be able to buy a home even with terrible personal credit?

Question

my wife and I have terrible credit and no matter how hard we try to rebuild it just never gets there. I do have a side business restoring furniture and ive heard that if I incorporate we can buy a home under the incorporation even with terrible personal credit what I need to know is that true? and how do I go about it?

Answer 1

These people are mistaken. I ask are any of you owners of a LLC? Well I am, and there are several ways to build a completely seperate credit profile for your company, which
would have no personal guarantee. This "new" credit can be
used to purchase anything that personal credit can buy.
A LLC is a seperate entity, and therefore able to buy/sell, and own property. Don't believe me look it up. After that email me at
[e-mail] and I'll set you up with some resources

Answer 2

It is probably not true since the business belongs to you and your wife and there are no other owners. Incorporating the business will not improve your credit and anyone selling a home to the corporation would look to you as the primary debtor. However, if the business as a corporation is well capitalized, a lender may be willing to lend to the corporation provided it can offer sufficient security. That is, the corporation would have to convince the lender that it will be able to service the debt, and if it cannot do so, it will have enough assets to enable the lender to recover the loaned money. Given your limited description of your situation, it does not seem possible that you can capitalize a corporation sufficiently. If you could, you could also buy the house as individuals.

Incorporating your business involves a cost, and it does not appear that you would gain anything by it. There may be some tax advantages, and you may be able to reduce your personal liability, but these benefits are unrelated to what you are trying to accomplish. Lenders look to owners of a corporation if its privately owned to decide if they will extend credit to the business.

Answer 3

First, store up what you'll be able to even as you're nonetheless paying off the historic stuff. Then, see who there could also be amongst your loved ones who perhaps inclined to co-signal for you. Even extra, perhaps inclined to mortgage you a significant quantity to make use of for a down fee. The greater the down fee you've, the much more likely a loan enterprise will take a threat on you simply given that the condo is more likely to pass up in significance even as you keep it, and for those who cannot find the money for to preserve it, they're going to no longer lose. Granted, all this would take a little time. Have you seemed into the likelihood of leasing a situation that's available on the market, in order that you would be in line to shop for it if you'll be able to prepare for financing, and will also convince the previous proprietor to aid you financial it simply to have the sales themselves. Not always "hire with an choice to shop for," however as an alternative leasing from anyone who's pondering they're going to most likely promote the situation earlier than lengthy. Lease an sales estate from a senior couple, and ask them to advocate to their heirs that you simply get first shot at it, if it will have to come to that. Not the primary day, of direction, however after they realize they may be able to believe you. See, the extra an fiscal determination is made approximately you at the foundation of who you're now, and no longer who you have been whilst you screwed up dangerous sufficient to have got to claim chapter, or some thing the down and soiled side of your credit score historical past is, the greater it is going to be. So lengthy as you're now being in charge adults, doing the first-class you'll be able to moderately be anticipated to do, and no longer losing cash, ultimately that individual will soak in to the folks close you. They will be taught that you've matured, and will now be depended on.

Answer 4

You've heard wrong. How could you legitimately have your corporation own your house? And anyway, a lender would still want to check your personal credit, and it doesn't sound like you'd qualify.

A a side note, I hope that you are reporting your income from your side business, and paying taxes on it, as you are legally required to do. If you aren't, you think your credit is bad now, wait until after the IRS catches up with you!

Answer 5

Unfortunetly, your credit will be a huge impact on approval, regardless if you're incorporated or not. In all honesty business owners are scrutinized more just because they're typically self-employed, being a higher risk borrower. The wisest thing you can do is focus on fixing your credit and remembering that it takes patience, because your scores will not bounce back overnight.