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Answers (5)
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
It appears as though the key roadblock is the "foreclosure." FHA loans require a minimum of three years to have passed since the bank took back your home and I doubt any other loan program is going to be more lenient. Keep in mind that is FHA's "minimum" amount of time. Depending upon the rest of your credit profile the lenders may make you wait longer - or not.
Once you try to purchase from your mother it will be labeled as a "non-arms length" transaction and FHA limits the loan to 85% of the home's value.
FHA makes one large exception to the rule though - "Note:The 85% limit may be waived if the family member has been a tenant in the property for at least six months immediately predating the sales contract. A lease or other written evidence must be submitted to verify occupancy."
It's possible you might qualify for the full 96.5% loan from FHA if you can meet the guidelines. I'd get with a lender sooner than later to see if it can work for you.
Once you try to purchase from your mother it will be labeled as a "non-arms length" transaction and FHA limits the loan to 85% of the home's value.
FHA makes one large exception to the rule though - "Note:The 85% limit may be waived if the family member has been a tenant in the property for at least six months immediately predating the sales contract. A lease or other written evidence must be submitted to verify occupancy."
It's possible you might qualify for the full 96.5% loan from FHA if you can meet the guidelines. I'd get with a lender sooner than later to see if it can work for you.
- Monika Der Matteosian, "Monika D. Matteosian"
- Contributions:46
What I don't understand is why are your mom & the boyfriend buying the house first?? Instead of your mom putting 20% down buying the house, she could give you the FHA down payment of 3.5% as a gift and you buy the house directly yourself. Every time you purchase a house you have to pay loan fee's, appraisal fee's, closing cost's etc. Why pay all these fee's twice in a very short period of time? I am not a lender, therefore I would recommend to talk to an experienced FHA loan agent first.
- NTETS, "Mr Caveat"
- Contributions:6436
sorry, i missed that your score was already in the mid 600s
- Bob Phillips, "BobPhillipsRE"
- Contributions:772
You can probably get a property with an FHA loan, with a relative co-qualifying with you. I'm not a lender and not really up to speed, but when I last checked you just need a FICO in the 620+ range.
Also, your relative can gift the ENTIRE down payment, and all closing costs, so if that's doable - which it sounds like it is, you should be fine going FHA, with your relative co-qualifying - up to the FHA loan limits for your County.
Also, your relative can gift the ENTIRE down payment, and all closing costs, so if that's doable - which it sounds like it is, you should be fine going FHA, with your relative co-qualifying - up to the FHA loan limits for your County.
- NTETS, "Mr Caveat"
- Contributions:6436
you probably cant do anything except pay the mort unless you improve that credit score and save at least a 3.5% down payment,
unfortunately having a mom with good credit and a good job is not enough to get you a loan. you have to qualify on your own.
unfortunately having a mom with good credit and a good job is not enough to get you a loan. you have to qualify on your own.
which loan program will allow us to buy a home from a relative? Usda? Fha?
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