Home Buying in Charleston>Question Details

Chefnoel, Home Buyer in Charleston, WV

Me and my wife have bad credit but are workig on improving it. We are looking at purchasing a home and wanted to know if parents are allowed to cosign

Asked by Chefnoel, Charleston, WV Fri Jun 3, 2011

Me and my wife are working on rebuilding our credit. We both have great jobs with plenty of money left to afford a home. I am wondering if my parents who are very well off can co-sign for a home loan for us. We will be paying the down payment and monthly note but we are unable to get approved by anyone because our credit score is right around 600. Any advice??

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Typically a co-singer is not going to help overcome credit history. Co-signers in general are discouraged and typically are only permitted if income / debt ratios are the issue.

There are many factors besides your credit score that determine ability to qualify for a mortgage. For a period of time a credit score of 620 or below would almost certainly disqualify an otherwise qualified purchaser from being able to obtain a mortgage. This is no longer the case and there are several programs targeted toward individuals that have a credit score of 580 or higher.

If you have a few moments to discuss your situation further I would be glad to discuss options that may be available for you, and suggest a few lenders that would most likely be able to assist you. You can reach me at 304-205-9123.
Web Reference: http://www.homesearchwv.com
2 votes Thank Flag Link Fri Jun 3, 2011
Everyone is correct above, typically Co Signers are only used to help with debt to income issues, but there are programs available for credit scores down to 500 in some cases and 580 in others. CO Signers with Excellent Credit and Income and help with qualification on these programs.

If you have questions, you can call or email me at...

PDeibler@MyHsoa.com

or

443-343-0400 ext 150

Good Luck,
Paul Deibler
Web Reference: http://www.My-Hsoa.com
0 votes Thank Flag Link Fri Jun 3, 2011
In addition to the above answer, a cosigner can not be used to improve your credit situation, but can be used to improve your debt-to-ratio income. You would have to have qualifing credit on your own. If you have any questions or would like assistance finding a good lender in our area, I can be reached at 304.610.5993.
0 votes Thank Flag Link Fri Jun 3, 2011
There are other factors besides credit that determine mortgage qualification; therefore do visit with any qualified loan officer, after reviewing your overall financials, credit and debt a determination on qualification can be made, with or without a cosigner; if you don't yet qualify, he/she may offer great suggestions as to what needs to be done in order to qualify in the near future....
0 votes Thank Flag Link Fri Jun 3, 2011
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