Financing in 33412>Question Details

David, Home Buyer in 33412

How do I get someone off the mortgage and refinance when we are upside down around 100k?

Asked by David, 33412 Mon Jan 25, 2010

I currently own a home with my older brother. We have owned it for a little over two years. However, our relationship has deteriorated so much that we avoid each other altogether. We have an FHA loan, but I feel my mid-600 credit score would not be enough to qualify for a refinancing loan and I wouldn;t be able to put any money down. Also, we are about 100k upside down, due to the housing market crisis. I would like to take over the mortgage on my own, but I am 23 years old and do not know much about mortgages and how they work. How would I go about doing that or who do I need to talk to?

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Hannah’s answer
Hi David,

You may qualify for an FHA with a mid 600 credit score. 620 is really the minimum. Since you are $100k upside down what you can do is work with a mortgage broker who can assist you with the refinance and "buy" equity down bring $100k cash to the close and then you can refinance and cash out your brother. You then take over the property with the loan in your name, have him sign off the title and off you go.

The other way to do it, is have him sign off on the property, the mortgage will stay in his name and when you are able to through cash, and forced appreciation in the next 5 years you can refinance and get the loan off his name.

Those are really your only two options for a refinance. Good luck!
0 votes Thank Flag Link Mon Jan 25, 2010
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