Any one with Realtor knowledge.??. questions about buying new home..?

Deal Score0

I have not so good credit, but I have a family member willing to help me buy a home,, that has excellent credit,, was told that we could get a no-doc loan,,
from my understanding if we get a no doc loan,, we will have higher interest rates,, is this true,, and is there a way to combine the two there credit with my strong work history in order to lock in good rate and not so hight mortgage payment,,
also we are looking to buy a fixer-uper house,, any suggestions
also is it poss to get this with no- money down?

7 Comments
  1. Reply
    Paige B
    May 3, 2011 at 3:06 am

    First off, Realtors don’t deal with loans. You need to ask a loan specialist about that. About buying a fixer-upper, the best way to go about it is to find a realtor to be your buyers agent. They have access to your counties MLS and can find many more homes than you ever knew existed. Also, you could look on Realtor.com, that is a very good website to view houses and get the info you need.

  2. Reply
    rhsaunders
    May 3, 2011 at 3:54 am

    The recent troubles in the sub-prime lending arena have made life more difficult, and getting a no money down mortgage is basically impossible, especially if your credit history is dicey. Prepare the following paperwork: a balance sheet (what you own and what you owe), and an operating statement for the past year (where the money came from, and where it went), and take these to your banker. He will be impressed by your thorough preparation, and will be able to advise you.

  3. Reply
    laura D
    May 3, 2011 at 4:28 am

    No doc loans are becoming obsolete. Yes, your interest rate would be through the roof!

  4. Reply
    thinking-guru
    May 3, 2011 at 4:39 am

    You are asking about a cosigner on a home loan and yes, it is allowable under several programs. The person who makes the most $ $ $ becomes the borrower (the other is the co-borrower). Both applicants histories are taken into account for the approval (employment/earnings, credit, debts, etc.). A no doc (or NINA-no income, no asset) loan may have a slightly higher interest rate…typically only .250-.500 higher.

    100% financing is available but that, too, will increase your rate. Remember this: your loan terms are based upon the risk factor of what you are trying to do. Higher risk=higher interest rate. 100% financing is a very high risk. Will the cosigner live there too? If not your choices are more limited but this is still doable.

    Depending on the interest rate you are given it may be better to wait a while and let your credit improve before buying a home. 1% in an interest rate equals 10’s of 1000’s of $ $ $ $ in interest paid on your loan.

  5. Reply
    mrsfoster
    May 3, 2011 at 4:57 am

    What you are discussing is a Non-Owner Occupied loan – they will buy the home and then you rent or purchase on a Contract for Deed from them.

    Since Investor loans carry a higher risk the rate is usually higher. Since the loan will not be the permanant one, possibly look at an ARM or Interest Only or a 40 yr term to get the lowest possible payment. You are going to have to refinance anyway at some point.

    You cannot combine yourself with your family member, Conforming loans look at the lowest score of the 2 borrowers and Sub Prime will look at the score of the person that earns the most money.

    Yes you can go No-Doc but with everything that has happened in recent months, you will probably need a healthy downpayment (20%). There is not really a way to go no money down on a NOO property.

    I am assuming you are going No Doc due to the family member being retired???

    You do not say what is going on with your credit, but maybe the family member could help you clean up your credit.

    If you have not had any late payments in the last 12 months and you have not filed bankruptcy in more than 24 months you might qualify for FHA. FHA allows for non-occupant co-mortgagors which might make your case stronger. Ask a reputable mortgage broker for assistance. FHA requires a 2.75% down payment but you can use CHAPA funds from the seller to pay this. Seller can also pay your closing costs.

  6. Reply
    lauri32morningstar
    May 3, 2011 at 5:40 am

    Hi!
    My partner and I just purchased a condo here in SF. I have pretty bad credit.. We had a Realtor from Coldwell and through the Realtor we were referred to a loan officer from Citibank… She was very helpful and was very fair.. I suggest going to your bank or your family maember’s bank who is willing to help you out. Shop around… We tried with several banks. There are ways to get a good interest rate . You may want to stay away with the no doc loans.. You you may face a foreclosure if not able to keep up with the high interest..
    It is possible to get a place with no money down BUT your interest rate will be much higher. If you want a lower interest the more you can put down the better and your mortgage payments would also be considerably lower.

    In my opinion though SAVE SAVE SAVE and build your credit and then purchase your dream home outright. Try to avoid having your family member helping out unless you can in fact make every mortgage payment on time and you can afford it…Your family member is taking a major risk in his or her credit rating..

    Shop around for an honest Realtor/broker and a reputable loan officer. ALSO, make sure you read all documents before signing anything..

    Good Luck!!!!

  7. Reply
    John, a REAL Buyer Broker
    May 3, 2011 at 6:20 am

    Your situation is very specific. It can’t really be answered in general terms, becuase the precise details of your financial life all play into it. It needs to be answered by a good mortgage broker who can be trusted, and who hears every detail of your exact situation. If you are California or Connecticut, I can give you a name, but outside of that, you might contact and EBA in your market, and have them direct you to someone they work with.

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