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Registered: ‎12-02-2011
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One Final Mortgage Question!

So, here is where my Fiance and I stand. We were told our credits were not established enough, and we had to work on some derogatories before we could apply. Our current living situation cannot last us much longer, so we were talking about renting. My fiance's parents have decided to sign our mortgage for us. Here is the question though. Her mother is going to sign the mortgage in her name, and we are going to co-sign. Eventually down the line, her mother will then sell the house to us when our credit is better. If we co-sign the mortgage, what do they look at on our ends? Do they do credit checks, I know they verify income. I was told by a mortgage broker that our credit wouldn't matter, they would just use us for our income so we could get a higher loan. Is this true? If we are co-signers, will this mortgage show up on our credits? Any help would be greatly appreciated as I am fearing going down this path, but this is what my Fiance wants, so it is what she will get!


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Re: One Final Mortgage Question!

Anybody?


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Re: One Final Mortgage Question!

As far as I am aware, if you are on the loan, your credit will be used.  For mortgage applications, they use the lowest middle score of the applicants.  And if you need to use your income, I don't think there is any way to not have your credit factored in.  If your soon-to-be-mother-in-law's income is enough to support the amount of the mortgage, she could apply on her own and you and your fiance can be listed on the deed, but that doesn't seem to be what was suggested to you.


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Re: One Final Mortgage Question!

From what I understand, my girlfriend was going to be co-signing. All this is so confusing. I don' t think her mom makes that much to be on a mortgage completely alone. The house we are interested in is only 70k, so I am not sure how much she would have to make..She has no other bills besides 20 year old good standing credit cards


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Re: One Final Mortgage Question!

co-signer credit will be used.

 

is this a local bank? credit union?

mortgage broker?

 

you do know that mom being primary borrower makes this an investment property for HER. 20% down payment will be required most likely

 

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* Lending across the entire 'Great State of Texas' since 2004
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Re: One Final Mortgage Question!

Yea, through BB&T bank. Yea, we know it will be her property until she sells us it. She was going to attempt to use FHA. I have always had a feeling our mortgage guy kinda talked out his ass. He was the one who convinced us to have her mom do the mortgage, and use us as co-signers because they would only look for our income and credit wouldn't be an issue.


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Re: One Final Mortgage Question!

the good news is: with one of you on the loan and/or title..... you dont have to buy from mom..... you refi into your names only. mom just releases her interest as one of the refi documents

this may have benefits down the road.

 

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* Lending across the entire 'Great State of Texas' since 2004
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Re: One Final Mortgage Question!

Oh that is really good news. Credit wise, if my Fiance was to co-sign, would it report on her credit report as if she had the mortgage, or would she only be on it as the backup payer?


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Registered: ‎08-30-2011
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Re: One Final Mortgage Question!


Tischer712 wrote:

So, here is where my Fiance and I stand. We were told our credits were not established enough, and we had to work on some derogatories before we could apply. Our current living situation cannot last us much longer, so we were talking about renting. My fiance's parents have decided to sign our mortgage for us. Here is the question though. Her mother is going to sign the mortgage in her name, and we are going to co-sign. Eventually down the line, her mother will then sell the house to us when our credit is better. If we co-sign the mortgage, what do they look at on our ends? Do they do credit checks, I know they verify income. I was told by a mortgage broker that our credit wouldn't matter, they would just use us for our income so we could get a higher loan. Is this true? If we are co-signers, will this mortgage show up on our credits? Any help would be greatly appreciated as I am fearing going down this path, but this is what my Fiance wants, so it is what she will get!


Hi, I had similar questions a whille ago and this is what i have found out after doing research!!

 

Yes they will do a credit check for the cosigner and they will take the 2 middle scores from primary borrower and cosigner and then take the lowest score and that is the one they will use! They also consider the extra income from the cosigner but also consider DTI from both borrowers! 

 

Yes it will report on the cosigners CR!  


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Re: One Final Mortgage Question!

Thanks. I guess it isn't too much of a bad thing. Her mom has a spotless record, and my girlfriend only has one derog that is closed and paid. We will probably just wait for statements to cut and put in our app for mortgage.


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