looking to buy a home

Asked by Brittney, Charlotte, NC Tue Oct 15, 2013

My husband and I would like to buy a home. We recently went and tried and learned that his mother had been using his name and messed up his credit. He is a contractor who is considered self-employed,his score is currently around 593 and we have around $5,000 saved. Are you still able to have a cosigner? my parents have good credit and are willing to be our cosigners.

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9
Jessica Bate…, Agent, Beverly Hills, CA
Mon Oct 21, 2013
Yes lenders can go down to a 580 for FHA, and 620 credit score for a conventional loan.. But you have to find the right lender, I would suggest going to The Lenders Network they are a referral company that can get you in contact with the right lender.
1 vote
Eric Cox, Agent, Charlotte, NC
Sat Oct 19, 2013
So many people are using their parents as their Lender these days.

You have 2 hurdles, 1- you're self employed so unless you have set yourself up to earn a W-2 through your company, it's going to be tough; 2- the credit score is just a tad low. There may be things on there that could be cleared up relatively quickly and boost you up over that 600 threshold and the banks would like you more. Check out nerdwallet.com and play around with the "mortgage rates" under personal finance to see what it looks like.

If you're parents had the money or if you knew someone who did, you could check out nationalfamilymortgage.com and see how they could actually be your lender. It's a new website stemming from the recent change in crowdfunding rules that is taking some power away from the big banks.

I'd love to help you out in any way I can. Call, text or email me anytime.

Eric Cox, Principal
Cox Residential
Call/Text 704-340-8510
Eric@CoxResidential.com
0 votes
Daniel Fisher, Agent, Charlotte, NC
Tue Oct 15, 2013
Good afternoon, Brittany:
Sorry to hear of this bad situation. While a co-signer will usually not help much in today's lending environment (loans are based on the person with the lowest credit score) the good news is that you are very close to the 600 middle credit score needed to qualify for financing.

You may want to read the read the Trulia Real Estate Blog: Can I get a home or am I stuck renting? (link below). If you meet that criteria, you can usually purchase a home. I would get a couple of secured credit cards and engage a HUD certified housing counselor to advise you on how to clean up your credit and dispute those charges that are not his. The blog "Ten tips for repairing your credit history, raising score" may also be helpful. http://goo.gl/INE80

Your $5000 in savings will be helpful, but there are programs out there that will give you $7500 towards down payment and closing costs that if you qualify for them would allow you to use the savings to settle debts, boost your credit scores and qualify you for a mortgage faster. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
0 votes
, ,
Tue Oct 15, 2013
Are you going to use your credit score?

If you don't use his credit then you must use your credit in order to obtain a loan with owner occupancy terms using your folks as a co-signer....

Otherwise, your parents will be looking at an Investment purchase and depending on the property they will be required to make an investment or down payment of as much as 20%.

IF your husbands credit is "messed up", then you might have difficulty using his credit and/or income for traditional mortgage loan qualification purposes until it's repaired---although without analyzing his credit report it's impossible to confirm though. (You only mention one credit score of 593 and most lenders will need all 3 scores)
0 votes
Jackie Young, Agent, Denver, NC
Tue Oct 15, 2013
Hey Brittney! send me a quick email jackieyoung@kw.com and I'd love to help you out!

Thanks!

Jackie Young

Keller Williams Realty
704-575-9202
JackieYoungHomes.com
0 votes
, ,
Tue Oct 15, 2013
Potentially yes. Email or call me directly so that we can explore the financing opportunities.

Steve Thorne
Loan Officer
Mortgage Loan Originator #60596
River Community Bank, N.A., NMLS #448992
http://www.ncfhaexpert.com
111 Corning Road, Ste 230
Cary, NC 27518
Office Direct: (919) 459-1314
Cell: (919) 649-5058
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Tue Oct 15, 2013
With a co-signer you shouldn't have any problems. You'll want to speak to a lender and see whether they want your husband's name on the contract or not, it may be better if he's not on the contract (though he can still be on the Deed)

You'll also want to find yourself a good experienced Buyer Broker, I've attached a link below that will help you know what to look for and how to interview potential Brokers. After reading it; click on the Find and Agent in the green bar at the top of every Trulia page and type in the zipcode where you want to buy and this will give you a good list to work from to find yourself a good agent to represent you.

Good Luck and Happy House Hunting.
0 votes
John Siddons…, Agent, Charlotte, NC
Tue Oct 15, 2013
Hi Brittney!

Email me directly and I'll get you in touch with some lenders that may be able to help you in your situation.

John Siddons
John.Siddons@BHHSCarolinas.com
0 votes
dave, Agent, Charlotte, NC
Tue Oct 15, 2013
Depending on what is on his credit report and the type of loan you are looking for there are possibilities for him to get a mortgage loan... I recently added a mortgage professional to my portfolio that will approve credit scores as low as 580 but there are criteria involved....A lot will depend on what is on his credit report.

The mortgage person to call is Chris Ayer at 704-771-3954.

Dave diCecco
Realtor/Broker
Helen Adams Realty
Cell: 704-519-7895
ddicecco@helenadamsrealty.com
http://www.davedicecco.com
0 votes
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