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Purchasing a house with Minimal Income, great credit, and some equity.

Hello. My grandmother wants to move back to California after the recent passing of my grandfather and she wants to purchase a house. She owns a home outright that she wants to leave for other family to live in. Her current income is only about 2500 dollars a month, so she has asked that I move in with her to help with the home. The problem is that my credit isnt great and I would probably hurt her chances for the loan. Wondering what I can advise her to do here? I do make a good amount of money but I have past issues that would insure a denied application.

Thank you in advance.
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January 14 - Northridge
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Answers (10)

It would be best to contact a lender directly with all the figures and exact paperwork (credit reports, bank statements) and so forth. You can speak to your own bank, or get a good referral for a loan officer.
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January 23
Hi,

It sounds like your grandmother may have several options.  One option could be to get a loan that uses potential rental income from her departing residence to help qualify for buying her new home.  Another could be to evaluate your credit scenario and see if it would be possible to have you on the loan with her. Many people feel that they have poor credit, but it is surprising how many of them actually fall into the "in the box" lending scenarios.

Please contact me if you'd like to look into either scenario or others.  Good luck!
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January 16
She should consider doing a reverse mortgage on the house she owns, to pay for the new one.
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January 15
There are quite a few details missing about your situation that would help us figure out your situation. How bad is your credit? If you are at least above a 580, then you should be able to still obtain a mortgage with lenders like myself. If not, then it will be much harder for you to obtain a mortgage in your situation. I recommend that your grandmother try applying for a mortgage on her own first. It still can be possible with her income. As I said earlier there are a lot of needed details. So the best thing for you to do is to speak with another lender such as myself to see if you can get started on refinancing. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
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January 15
Contact a lender directly. There may be options with the parameters you have set forth but only a qualified lender can truly answer these questions.
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January 14
Need much more information to be able to give worthwhile feedback.  To start with what purchase price and down payment amount is she planning?   If the down payment is large enough, it might be simplest to purchase with a reverse mortgage (assuming she is 62).   

If the plan is to have a house that you both live in and keep for the long run, then would need more details on what your credit scores are (and reasons for those scores), this would help to see if a joint application has potential.  

Primarily it must be determined if grandmother can accomplish the objective on her own and if it turns out to be impossible without your help to add qualifying income then the focus moves over to seeing what needs to happen for your credit scores and profile to qualify.
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January 14
You should contact a lender directly withbyour questions. It's not a yes or no. Best, Susan Bo'ur Realtor/Coldwell Banker Santa Monica
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January 14
The situation you have proposed is very vague, if you could please elaborate more it would be appreciated.  For instance the $2500 a month that your grandmother receives is that a fixed income?  It is taxable income?  Also the home that she owns would she still keep the home, because she would still be responsible for paying property taxes and insurance on the property she owns and that will also impact her debt to income ratio's for buying a new home.

You said that you make good money but have credit issues, what kind of issues?  If you don't want to post it here I understand and you can feel free to reach out to me.  I would be more than glad to hear your scenario of what you are trying to accomplish and see if I can help propose a plan to meet your needs and your grandmother's needs/
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January 14
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Hello. Yes, currently it is about 2500 per month.
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January 14
Does your grandmother have income?
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January 14
 
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