Consumption and Real Estate
This is about home refinancing. My husband would like to refinance but my credit is poor.?
Question : This is about home refinancing. My husband would like to refinance but my credit is poor.?
If he refinances with our son, who has better credit then I do, would that mess up my sons chances of getting home financing in the future? Also would that put my son on the deed and take me off?
Would it affect my sons ability to purchase a home even if we showed that we were making the payments?
refinance with poor credit
Best answer:
Answer by towboat_50
yes to all
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#2 written by Dan 1 year ago
You have some great answers but let me add my two cents. If your husbands credit is strong enough I recommend him to go “stated” alone. First it will not cause strain or delays if your son is looking to buy a home in the next five years. If your husbands score is not strong enough then have him and your son and immediately start working on improving your credit. Your son would now become financially responsible for the mortgage payments if he is on the loan paperwork. In any event it can be very difficult to understand every aspect of this loan scenario. I hope this helps you but if you need more info or have any more questions please email me tadgeman@yahoo.com.
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#4 written by ~Trey 1 year ago
Hi 123abc,
It could affect your sons ability to buy his own home in the future. Lenders want to know what his back end debt ratio will be. IE: Does he make enough to support two homes. A back end ratio greater than 55% may put him in jeopardy depending on his situation when he looks to buy his own home.
If your husband and your son wanted to proceed they would be legally responsible for paying the loan. You would be off title until you submitted what’s called a quit claim deed, or warranty deed in some states.
You would then hold legal interest in the property, but you would not be held responsible to pay on the mortgage.
Your credit will still show, however if you are not going to be taken into consideration for qualification purposes, than there are programs that can minimize the effect of a derogatory spouses credit profile.
Good Luck,
~Trey -
#5 written by garciasgirl9 1 year ago
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#7 written by *♥*MO~Reh~NUH*♥* 1 year ago
If you make the payments on time that will actually help your son out in the future. Also, he may not need to go on the loan if your husbands credit is strong enough. If his fico is above 620 he may quilify for a stated loan. Now if this is not the case, then you’re son could or could not be much of a help. Depending on his credit. If his credit is good. Then everything is fine. In the future when he wants to purchase a home. He will have to just let that lender know that the home he currently owns is his parents house and its an investment property of HIS. He would then show proof that he is not responsible for making the payments and this will be excluded from his debt to income ratios. As far as title goes. You can remain on title. You son will initially go on title but he can actually quit claim off once the loan closes. In other words the vesting on the deed of the house would read as follows ” John Doe and Jane Doe as husband and wife and Jack Doe, a single man, all as joint tenants. Once he comes off… it would read.. “John Doe and Jane Doe as husband and wife as joint tennants”
Hope this helps.
XOXO
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Hi there;
It doesn’t matter who is making the payment… this is not how lenders look at it. If your son is going to be on the loan then it will show as debt on his credit report. This means in the future when he wants to buy his own house he should be making excellent money to support payments of both mortgages. His debt to income ratio has to be 40% or less, in other words if the 1st mortgage payment is $ 2,000 and the 2nd mortgage payment is also $ 2,000. Then adding them up is a total of $ 4,000. So your son has to be making 10,000 or more to qualify for a loan if he was to show his income. or he can do stated income and state that he makes 10,000 but this would have to make sense to his position title at his job.
I hope i made sense to you. if you want further explanation you can email me at maikh81@hotmail.com and we can exchange phone #s and I’ll be able to provide you with more info.