Home Buying in Gurnee>Question Details

Robert Lee, Real Estate Pro in Libertyville, IL

Client has poor credit. 600 or below. He wants to know if his friend who lives in Vegas can co-sign on the loan?

Asked by Robert Lee, Libertyville, IL Fri May 13, 2011

He is looking to purchase a $100,000 property.

Help the community by answering this question:

Answers

5
Hi
Plenty of local mortgage expertise in Libertyville. co-signer won't make up for a bad score, only a marginal score.
1 vote Thank Flag Link Wed Jun 29, 2011
Robert,

We will approve FHA borrowers down to a 600 mid score. If you'd like to discuss your clients details, please feel free to call me. I can let you know within a few minutes if they would meet our guidelines.

Mike. 708-257-7058
mcline@waterstonemortgage.com
0 votes Thank Flag Link Sun May 15, 2011
A co-signer does nothing to help poor credit, related or unrelated. The question is irrelevant.

"The question might as well be:
"Client is 12 years old, can he get a co-signer?"

The answer would be:
It would make no difference, the borrower is still 12.
0 votes Thank Flag Link Fri May 13, 2011
Hi Robert,

Yes, however unrelated individuals have to document evidence of a family-type, longstanding, and substantial relationship not arising out of the loan transaction.

Best regards,

Elva A. Wormley
Cobalt Financial Corporation
0 votes Thank Flag Link Fri May 13, 2011
Co-signers have to bee blood relatives for one, but even then, a co-signer won't help with a 600 credit score. Even if you bring someone with an 800 score the mortgage will be based on the lowest middle score. What your client needs is a lender that will do an FHA mortgage with that score, the co-signer is irrelevant unless they need extra income to qualify.

There are lenders that will do FHA loans with scores down to 500 with 10% and down to 580 with 3.5% down. Find one that will do the 3.5% and if your borrower has the income, they won't need a co-signer.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri May 13, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer