Getting a competetive rate now? Gift equity transaction.
I am getting ready to purchase the condo I have been living in for 2 years that my father currently owns. Since he purchased it in 2011 the condo has gone up in value significantly due to the housing boom in my city. I will purchase the condo from my father for $225k and it's currently valued around $350 so he is going to gift me the equity. I have spent the last 6 months cleaning up my credit and have made great strides but still have 3 deraogatory marks- small charge offs, each under $500 and each currently paid in full. One is 6 years old the others are both 3 years old. My current scores are as follows- EQ:662 EX:664 TU:714 My annual income for the last 3 years is ~70k, no other debt. My question is- because this is a unique type of a transaction (where the property is worth much more than the loan) am I likely to qualify for a competetive rate now- with my current scores which are only fair? Or must I get my scores above 720 to get a good rate regardless of the transaction.