Home Buying in Round Lake>Question Details

Susana, Home Buyer in Round Lake, IL

hello, my husband and i would like to buy a home but our credit score is not great, could we get my parents to co-sign since they have good credit?

Asked by Susana, Round Lake, IL Mon Jun 27, 2011

my husband is a marine and we're looking for a VA loan, however our credit score is not good enough to purchase a home on our own, could my parents to cosign a loan with us?

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Gene Mundt’s answer
Susana: You have been given alot to digest within prior comments ... much of it very good advice. But the bottomline is this ... you won't know exactly what IS possible until you talk to a qualified mortgage lending professional regarding your financing options. Until more is known in detail about your personal financial scenario and credit scores, all comments are pretty much guesses. Should you want to bring parents into the transaction, their information is needed to know your options too. My suggestion is to find a mortgage lender, sit down and talk with them regarding your financial situation, your hopes and plans for purchase. They will be able to direct you as to your best options and course of action.
That said, I would be happy to provide that service for you, should you be interested. You can contact me here at trulia ... or at the website below. I wish you the best of luck, no matter what decision you make ...
Web Reference: http://www.genemundt.com
0 votes Thank Flag Link Fri Feb 3, 2012
Hi Susana
How did things work out for you? My son is active duty in Afghanistan, FOB Fenty in Jahalabad coming home next spring!
1 vote Thank Flag Link Fri Sep 16, 2011
I watched your video twice and didnt catch the reference to co-signing rules for low credit score applicants.
1 vote Thank Flag Link Wed Jun 29, 2011
I like Annette's strategy. Have your parents buy the house as an investment and you two work out terms rent to own with your parents.
1 vote Thank Flag Link Tue Jun 28, 2011
If you have already been told by VA that your credit isn't good enough then you cannot get a VA mortgage by adding co-signer.
Have you checked with a lender about a FHA mortgage. If you don''t qualify for that you have 2 chosices:
buy the house as an investment property with your parents. Your parents would be the only ones on the mortgage but everyone is on the deed.
you take the steps you need to take to improve your credit scores.
1 vote Thank Flag Link Mon Jun 27, 2011
Lots of good info and various directions to take. If you are interested, I have a loan officer that can take your credit and run it through a simulation program and can help you figure out how to improve your credit score and get the most "bang for your buck." Paying off items is not always the best way to go. There are a lot of factors that way in on it. Also, I work with a broker who works with over 40 different banks that have tons of different programs out there. Last, there are also programs to assist with your down payment that cost you nothing. Between all 3 of these, if we can't get you into a home, I doubt anyone else can. Please contact me if you need more info.
Web Reference: http://www.KayCanSell.com
0 votes Thank Flag Link Thu Feb 2, 2012
good afternoon susana...some conflicting info below...some is good..some a bit misleading..first of all, good credit will not overcome and make tough credit better on your file....there are a few banks that "blend" credit scores and credentials for all buyers..we have one here in michigan, first national bank in east lansing, but they don't lend in illinois....
second, FHA won't work unless your parents acknowledge they will be buying it as their principle residence and will occupy it..(and don't have an FHA loan on their own home) ..they could be non-occupant co-borrowers, on an FHA purchase with you, but it's the same problem previously dicussed....you would have to be the principle borrowers and that can't happen.....
-the way to do your deal is to have sufficent downpayment to go to a bank in illinois that will take you and your husband's credentials or with jointly with parents....
you could also ask parents to buy the home as an investment property..(conv. mortgage w/ appox. 20% or more down) close the deal and then quit claim deed from themselves to you, your husband and themselves.... with joint rights of survivorship...i suggest not recording the deed...at least not right away..it doesn't have to be recorded to be valid...it violates the "due-on-sale" clause in your mortgage...as long as it's written around state law and in a recordable format, it will solve the credit issues tripping up your file....until you can do a rate and term refinance to get parents off the loan..at that point, the qcd would have to have been recorded for a minimum of one year prior to the refinance...
hope that helps.....
best regards.
bob mcclure
0 votes Thank Flag Link Thu Jul 14, 2011
Hello Susana,
While VA loans are great, you should shop around.

If your credit is the issue, then you have some work to do. You should work on your credit while rates are down.

Here are some things you can go to work on today:

Private companies are going after the subprime loans again. Here is an earlier story that gives some direction on rent-to-loan arrangements:

If you live in an area that has been hard hit by foreclosures, then you might want to investigate a HUD loan:


PML of Longmont, CO
0 votes Thank Flag Link Thu Jul 14, 2011

I talk about how credit scores and mortgages work in the short video with the link below. It addresses your question about the co-signor.
0 votes Thank Flag Link Tue Jun 28, 2011
Dear Susana,

You have a great question. The lenders will not allow anyone with credit that does not quaify, on a loan at all. Although a VA loan is great, it can be more costly while obtaining it. Look into an FHA loan allow your parents to apply for the loan and then you and your husband can be placed on title along with your parents after closing. Then in a year or two when you and your husband have straigtened out your credit you can finance the home on your own. I have an extremely knowledgable loan officer and a fairly inexpensive credit repair person that would be happy to help if you like.. Also if you have any questions please do not hesitate to ask, I would be happy to help as well!
0 votes Thank Flag Link Mon Jun 27, 2011
This is a great question! The best thing to do is take your question to the professional. Who will know the best about your options but a good loan officer. In your case a loan officer that offers VA loans. The great thing here is the 1st person you talk before going on your home purchase hunt is a loan officer. They will pull your credit and parents statistics. Then they will give you your pre-approval letter which you will need to accompany any offers you make in the future. This would be a great time to ask the loan officer about the cosign.
Call me if you want some assistance and recommendation on a loan officer and home hunt questions. Oh ya this 1st meet service the loan officer gives and pre- approval letter work is all FREE. There will be no charges unless you purchase a house. So Good Luck and Happy Home shopping
Tony Skaronea
0 votes Thank Flag Link Mon Jun 27, 2011
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