Hi everyone, my Dad and I are trying to start investing in real state I have bad credit and will not qualify for any loans, my Dad has already paid off our home but he has a disability and will not qualify for any loans even if he uses the house as collateral; can I use a quitclaim deed to transfer ownership onto my name, and if so, can I apply for a home equity loan right away to buy another property once I acquire ownership?
@Juan Casanova First off, great name. Second, why would your dad's disability prevent him from getting a loan?
@Jason Hirko ; Hi Jason thank you for the quick response, I should have added that he is unemployed because of his disability, and his benefits barely cover his medical and day to day expenses; therefore we have had a hard time getting him approved for any type of loans, and the ones we do get are asking for ridiculous interests rates. We are trying to find alternatives on how to start investing in real estate. We thought that shifting the property to my name and then go for a secured loan will be our best bet.
You don't qualify for a loan, so having the house in your name doesn't help.
@Wayne Brooks ; oh man I thought having the house on my name, will give me leverage when asking for a loan and using this property as collateral. Oh well, lets keep thinking, thank you for your feedback.
Originally posted by @Juan Casanova :
@Jason Hirko; therefore we have had a hard time getting him approved for any type of loans, and the ones we do get are asking for ridiculous interests rates.
Interest rates are a function of (among other things) the borrower's ability to maintain and repay the loan. With seemingly little ability to repay, I think any interest rate someone would be willing to give you or your father would be reasonable, relatively speaking. Maybe you should reconsider those loan offers as a stepping stone to more traditional financing on subsequent deals.
@Jason Hirko ; will do thank you very much for your advise.
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