Equity Home Loans

my credit is bad and my mom wants my to buy her house?

she told my there is somthing called a intrust only loan that will help me build my credit up my credit is bad but there is equity in the home is it possible to get a equity loan on a house with equity if your credit is bad?

Public Comments

1. yes it's possible, but you're probably going to have a much higher interest rate, and a higher payment. The equity in the house will definately help you, it makes a bank much more likely to approve you for a loan if there's a great deal of equity in the home. Are you working, do you have closing costs? These are the things the bank will want to know. If you are having trouble with the bank, ask someone at the bank if they can recommend you to an institution that will help you. Good luck!
2. I don`t think it is legal to get a loan with a loan. Contact a mortgage broker they will know what you can do.
3. Yes. you will be able to get a loan if the house its in your name with the house equity. the only problem is that you will have to pay a big deal of rate for an equity loan. If you just want to raise your credit. why dont you just transfer some utility bills to your name. that will help your bad credit. also if you have a credit card. Alway pay early or on the date. Never leave any debt unpaid.
4. Sounds like you need to enlist the assistance of a Mortgage Broker. They work with credit challenged individuals. There are many programs out there that may fit your needs and interest only is one of them. My advice is to contact a Mortgage Broker in your area and let them view your credit worthiness and see what they can do to help you. Often, we think that our credit is worse than it is. You may need cash to help finance your deal but if Mom is willing to help, then perhaps she will be willing to give you a "Gift of Equity" in the sale. I could say much more, but without knowing your situation and credit history it is difficult to predict which program is best for you. Let your fingers do the walking, use your yellow pages to find a Mortgage Broker in your area.
5. If your credit is bad it's probably because you have a low income, and were not able to pay as agreed on your obligations. Get all three credit reports Experian, TransUnion, Equifax. See what needs to be done. Pay off collections. Dispute errors. You are going to have to resolve that first. If you mom is willing to wait a year you will be able to REFINANCE. The way to do this is sign a "CONTRACT FOR DEED" agreement with her. Have her take it to the county court house, and record it. After you make 12 monthly payments to the mortgage company with that contract recorded, and your income is up you will be able to refi, and your mom gets paid. If she can't wait tell her to list it for sale. Refinancing is much cheaper than coughing up a 20% down payment. If you pay 5% down you will have to have great credit, and income. Plus you will pay MPI an additional fee, until you reach 20% equity. I just dealt with a woman that owns a house free and clear valued at $500,000. She tried to get a home equity loan for $60k. With bad credit it did not fly.
6. I work for consumer lending resources we deal with over 100 lenders that specialize in financing people with bad credit.Interest only is not the way.Please feel free to contact me to go over some options at no obligation to you. Sal Scavo sscavocl@yahoo.com (813)689-9085