Construction Loan with Daughter

[Rwil72]

My middle score is 630 and my wife's middle score is 660 they are rising. Our DTI would be under 30%  with the proposed mortgage payment and we have 10% down. We have had several banks approve us for the end loan, but no company will approve us for a construction loan with our scores which is what we really want to do. Builders will not  hold the loan since we want to purchase a specific lot in the deal. My daughter said she would be a co-borrower with my wife for the construction loan and leave me off. My daughters middle score is 722 and the DTI would work. The plan was to have her and my wife do the construction loan and when the house is finished, my wife and I do the end loan and remove her. What problems might I face attempting this and is this ethical?

[Anonymous]

Have you thought about a one time close fha construction loan? You can acquire the lot and build with the same loan with only one closing, both together. I didnt know about these until January. I only found a few lenders by searching online, no local lenders do it around here. It might work in your situation.

[Rwil72]

I have heard of this program. I just forgot about it. I am going to look for builders who are approved to do the FHA construction loan.

Thank you so much.

[Anonymous]

Hi there were you able to find a FHA lender ? Looking to do the same thing . Thank you

[Rwil72]

This is one I found https://www.mortgagesforamerica.org/constructionloans

[Anonymous]

How did everything turn out ? I just contacted the organization to see if they can help me. Thank you