Financing in White Plains>Question Details

Ashley, Home Buyer in 20748

If my credit score isn't sufficiient to qualify for a mortgage on my own, can I get a cosigner just for credit purposes?

Asked by Ashley, 20748 Mon Jan 24, 2011

I have paid off everything that was negative on my credit, and it seems my score is moving very slowly. My income is more than sufficient for the price range of home I am looking at, but I would like to know if I got a cosigner who had better credit would I be able to qualify that way?

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Your best bet is to contact a loan specialist at your local bank. They have all the programs available for loans and can best help you out.
1 vote Thank Flag Link Mon Jan 24, 2011
Unfortuntely not. The common practice in the lending industry is to use worst case credit score and that would mean yours for the scenario that you have described. I would recommend attacking your credit issues first.
Web Reference:
1 vote Thank Flag Link Mon Jan 24, 2011
Hi Ashley,
Working on your credit score will take some time..good thing is - you are on your way. If you have a co-signer the lenders will look at both credit scores. Your best bet is to speak to a good lender and explore all your options. If you need help please let me know, I work with local lenders that will give you the most up to date information on your financing needs.
Let me know if i can help...
Good Luck!

1 vote Thank Flag Link Mon Jan 24, 2011
There are two companies that repair credit. And by repair I mean they are able to remove all negative items within three months
0 votes Thank Flag Link Thu Oct 31, 2013

Someone else mentioned it but co-signer doesn't really apply. It would be termed non occupant co borrower. If you have someone else buy the home for you if they live around you they will be required to put 20% as an investment property. If they live in another state they can buy it as a second home but I have to caution you that in my opinion this is mortgage fraud. I caution you not to do ANYTHING the least bit out of line and if someone asks you to do anything like this, walk away. My best advice stands, get the score, fuund out how to fix it and get to work fixing. If you need help on this let me know.
0 votes Thank Flag Link Tue Jan 25, 2011
Ashley, the best way to get your scores up is by paying down your revolving credit (credit cards). If you paid off some old collections ( 1 to 2 years old) that may be why your scores are taking longer to come up. For example, when you pay off a collection that is 2 years old, you are bringing that derogatory credit up current. Even though you are doing the right thing by paying your debts it can still have an adverse effect on your scores. It's an imperfect system but you need to learn how it works so you can get your scores up.

What are your scores now? Do you have any credit card balances that can be paid down? As I mentioned, paying down credit cards typically have the most impact on your scores. There are 2 thresholds where you will see improvement. When you pay your balance down to 50% or below of what your credit limit you will see some improvement to your scores. You will see the greatest improvement when you pay your balance just below 30%, In fact you will see a better improvement just below 30% than you would then paying off the account completely.

Now when you pay these accounts down, it can take 30 to 45 days for it to reflect on your credit scores/report. If you are in a hurry to get pre-approved then we have the ability to get this done for you in just a few days. If you would like more details please feel free to contact me at your convenience.

Elliott R. Oliva
Mortgage Banker
Envoy Mortgage, LTD.
202.681.1636 direct
"Se habla Espanol"
0 votes Thank Flag Link Tue Jan 25, 2011
Co-signer is GREAT however the lender will take the lowest mid score IF that your scores not to your benefit.

Have you considered having the co-signer purchase home on your behalf you make all the payments , tax, insurance and etc. Till your scores improve then purchase the home

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Jan 25, 2011
Hi Ashley,

You are asking a friend of a loved on to compromise their credit rating for you. If you link your poor credit rating with someone who has better credit then their credit is going to have a drag on their score because of you.

Why would you want to do this to a loved one?

Why not start with the basics? I know it is boring and takes time but moving forward you will have a better financial life.

First you start with credit repair and paying down your debts. Then you have access to good mortgage products. Keep in mind even with poor credit you can access bank financing but the mortgage products are not great products, they have high fees because you are considered a credit risk.

Mortgage products get really exciting when your score is above the 749 credit score threshold.

After you get your credit in good standing you select a mortgage product that meets your needs and is a good product for the type of home you wish to buy.

After the mortgage selection you then go shopping for a home.

Good luck!

Hannah Fliegel, FICO Pro
0 votes Thank Flag Link Tue Jan 25, 2011
Hi, Ashley. Everyone on the mortgage will have to qualify FICO/credit score wise. No way around that.
0 votes Thank Flag Link Mon Jan 24, 2011

The first step is to determine the mid score for the purposes of getting a mortgage. We use a different scoring model than auto loans or the "free" credit scores you see online. Don't let alot of people pull the score though. If you email me I can send you some information on the credit scores and how they work along with numbers. I have been featured in the Washington Times and DC examiner on ways to improve your credit score. Here is the link…
Take a look at that and let me know how I can help you get that score up so you have some choices in your loan. And let me know if you are a first time homebuyer I may have something else good that you can use to help.

0 votes Thank Flag Link Mon Jan 24, 2011
You can have another person added to the loan but not a cosigner, the term is non-occupant co borrower. Cosigners are for car loans not mortgages. You can visit my website or contact me at any time. I would love to answer any questions you have.
Web Reference:
0 votes Thank Flag Link Mon Jan 24, 2011
Only under extreme circumstances would I recommend ANYONE cosigning on a loan (mortgage or otherwise). You have had credit problems. If it happens again (and odds are it will) the other person is responsible for the debt.
0 votes Thank Flag Link Mon Jan 24, 2011
Hello Axhley, Good answers here. Quite agree with many, talk to a Mortgage Broker to see if he can help you jumpstart your FICO score. Many times you can see the rise in your score at the beginning of a new month. Good Luck, Allan
0 votes Thank Flag Link Mon Jan 24, 2011
Good morning Ashley, speaking directly to a loan officer would be the best thing to do as they would be able to give you all of your options, please let me know if you need a recommendation to a local lender to help you.
0 votes Thank Flag Link Mon Jan 24, 2011
Hi Ashley, there are minimum credit scores that are required by each lender and financing program. They will run a tri-merge credit report to
obtain all 3 scores from the credit bureaus. From those scores, the lender will select the middle score. If this middle score is below the minimum required, you will not qualify for that type of loan program. If there isn't another loan program that you will be able to qualify for, then your score can't be used at all, with or without a co-borrower. You will either have to get your scores higher or have another person purchase the home in their name. You can add your name on the deed after the home is purchased.
0 votes Thank Flag Link Mon Jan 24, 2011
If two people apply for a loan, the lower score is always considered, too.
0 votes Thank Flag Link Mon Jan 24, 2011
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