Selling Home - Advice - Posted by Lyn

Real Estate Investing Real Estate Financing
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Posted by Lyn on November 03, 2005 at 18:38:03:

Thanks. I appreciate the information.

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Selling Home - Advice - Posted by Lyn

Posted by Lyn on November 02, 2005 at 09:42:59:

I own a home I purchased via a bank foreclosure. I have upgraded the home and would like to sell it to my son for the price of the foreclosure plus my costs to upgrade the home. There would be about 10K in equity left in the home for my son.
Issue: My son has a credit score of about 570. Where can he get a loan at a decent interest rate?

Thanks
Lyn

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Re: Selling Home - Advice - Posted by Lyn

Posted by Lyn on November 03, 2005 at 18:33:14:

Thanks everyone for your comments. You have given me some good things to consider.

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Re: Selling Home - Advice - Posted by Lyn

Posted by Lyn on November 03, 2005 at 18:32:46:

Thanks everyone for you comments. You have given me some good things to consider.

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Re: Selling Home - Advice - Posted by RJ Baxter

Posted by RJ Baxter on November 02, 2005 at 15:40:28:

FHA

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Re: Selling Home - Advice - Posted by Jason L.

Posted by Jason L. on November 02, 2005 at 14:12:13:

Hi Lyn–Hopefully all is well. Ok, i was just pricing out a loan today with a 570 middle score. A 575 credit score will earn him a 100% loan. Yes, i have a lender who will do it. However they require a few tradelines, etc. Does your son currently live with you or does he pay rent? Cash or check? A 570 means 5% down or 5% seller assist. Now to rate…looking at a rate sheet in front of me, he will be looking at high 8’s-low 9’s.

loan amount 100k—$804.62
loan amount 120k----$965.00
loan amount 140k—$1126.47

Now here is another option which is very very popular in these cases…Have him bank finance 80% and have you carry back a 20% note. Do this for 1 year, have him improve his credit up around 680-700 and then refinance and pay you off. This will help him with rates, put a few dollars in your pocket, and this will most def. be a smoother loan. A win-win all the way around. Rates will be in the mid 6’s.

loan amount 100k—$632.06
loan amount 120k—$758.82
loan amount 140k—$884.89

Jason L.
Mortgage Broker

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Re: Selling Home - Advice - Posted by Patrick S. Lawson

Posted by Patrick S. Lawson on November 02, 2005 at 12:37:19:

He may qualify for an FHA loan. FHA rates are not bad.
If he does not qualify for an FHA loan the rates start to get pretty high with a 570 FICO.