Could I "use" my brother who has less than great credit to obtain an FHA loan at a low-down payment, (I guess I would cosign??). They currently rent and this would help get them into a home, but even if he may be unreliable for paying the rent, with the right deal, the other occupant would be covering most of the mortgage.
*I understand the risk with the family dynamic, but legally and realistically, I'm wondering if this is feasible*
I'd like to obtain a multifamily property and in my local market it just doesn't seem obtainable without a low-down payment. My first rental was 25% down. That's not feasible to grow. I have a family and we are settled in our primary home.
Curious if anyone has utilized a strategy similar to this and could shed light on their experience.
Could I "use" my brother who has less than great credit to obtain an FHA loan at a low-down payment, (I guess I would cosign??). They currently rent and this would help get them into a home, but even if he may be unreliable for paying the rent, with the right deal, the other occupant would be covering most of the mortgage.
*I understand the risk with the family dynamic, but legally and realistically, I'm wondering if this is feasible*
I'd like to obtain a multifamily property and in my local market it just doesn't seem obtainable without a low-down payment. My first rental was 25% down. That's not feasible to grow. I have a family and we are settled in our primary home.
Curious if anyone has utilized a strategy similar to this and could shed light on their experience.
Thanks!
When applying for a loan, use a mortgage broker, they have access to more types of loans than banks do. All participants have their credit checked and employment verified among other things. They will disqualify anyone who doesn't meet guidelines.
Lying on a mortgage application is a federal crime, as Letitia James Attorney General of New York, is finding out. She is accused of lying on a mortgage application. SO, I wouldn't do that. https://www.foxnews.com/politics/letitia-james-arraigned-vir...
A mortgage broker will be able to suggest legal alternatives and solutions.
Got it, I'll look at broker options. And the intent would not be to lie, I was asking if there is a structure that exists where this scenario could work. Follow up question would be, if a buyer wishing to use an FHA or USDA loan but fails to meet the credit requirements, is a cosigner able to help them qualify?
Got it, I'll look at broker options. And the intent would not be to lie, I was asking if there is a structure that exists where this scenario could work. Follow up question would be, if a buyer wishing to use an FHA or USDA loan but fails to meet the credit requirements, is a cosigner able to help them qualify?
You should be asking that directly to a mortgage broker. Asking here is only opinion since we don't know the full story and what your trying to do.