Posted on: 27th Feb, 2009 10:08 am
My fiancé and both have had several difficult situations which have left us with bad credit....we have recently caught everything up, but I know it will take quite a bit of time for our credit scores to rise. We are really wanting to buy a home, and have our parents ready to co-sign for us. But, from everything I have read, and from talking to a few lenders, they will take the lesser of the 2 credit scores, so a co-signer is not really going to be helpful to us. Does anyone have suggestions as to what :oops: else we could do? If our parents (who are current home owners) get the loan strictly in their name, will they have to get a conventional loan? We will be eligible for the tax credit for first time home buyers, if the loan is not in our name?
Hi marie,
You haven't mentioned your credit score in your post. However, as far as I know, in order to get a FHA loan, you will require a minimum credit score of 580. Apart from this, you should not have any late payments or collections in your credit report. As far as conventional loans are concerned, the required credit score is around 680.
You will be eligible for first time home buyers benefit only if you haven't owned any property within 3 years prior to the purchase of the new property. I don't think you will be eligible for the first time home buyers benefit if the home and the loan is not in your name.
Your parents may get another conventional mortgage in their name provided they have to prove that they are current on their mortgage payments and they will face no issues in paying another mortgage.
Thanks
You haven't mentioned your credit score in your post. However, as far as I know, in order to get a FHA loan, you will require a minimum credit score of 580. Apart from this, you should not have any late payments or collections in your credit report. As far as conventional loans are concerned, the required credit score is around 680.
You will be eligible for first time home buyers benefit only if you haven't owned any property within 3 years prior to the purchase of the new property. I don't think you will be eligible for the first time home buyers benefit if the home and the loan is not in your name.
Your parents may get another conventional mortgage in their name provided they have to prove that they are current on their mortgage payments and they will face no issues in paying another mortgage.
Thanks