Posted by Bruce Lawson on June 18, 2001 at 10:55:02:
Hi Anna,
Why not have your mother-in-law purchase the property and you and your husband do a Land Contract with her as the landlord. Meanwhile you can get started getting your credit on the right track, be sure your mother-in-law reports your payments to all three reporting agencies this will help you get a positive payment history, she can report as a landlord.
Contact me for additinal information on credit reporting and things you can do.
I am trying to purchase a house with my husband. Our credit absolutely sucks. My mother-in-law has agreed to co-sign on a mortgage so that we can buy this house. All I need to know is where do I go now? What types of loans will accept a non-occupying co-signer? I have tried to contact many banks and am not getting much in the way of a response. I know I am probably being impatient, but we had originally planned to close by approx. July 15th, and although that is probably out of the question, I would like to get rolling ASAP. Also, should I go ahead and have an appraisel done on this property so that I have this info available for potential financers? Any help or suggestions appreciated. Thank you!
You should probably look into an FHA loan. Those allow non-resident co-signers. Also - you do not order the appraisal, the lender does. If you order it, the lender cannot use it, so they will have to order another one and you will pay TWICE. So don’t do that.
Almost any bank or mortgage company should do FHA loans. Call them up and ask.