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I can understand the situation you are in, I have dealt with credit scores like yours just about my entire time of being in the loan business. Contact a mortgage broker that deals in sub-prime and Alt "A" loans. You might ask that question up front if they do sub-prime loans, you will save yourself lots of time. If your parents are gonna sell their house to you at $105K that is the sales price. Normally relatives don't fare to well in money matters,especially when one owe the other, so I would get a mortgage on my own so my parents would be out of the picture and the family will stay together. About the down payment, let your mortgage broker see what type of loan you are qualified for. He will tell how much you need to bring to the table as a down payment to include any closing cost. Now once you have been pre-approved or your loan is approved I would suggest that you get a 2/28 or a 3/27 this is a loan that is amortized for 30 years. In other words you will be paying the loan as if it was for 30 years, which it is really. The numbers in front of the 30 indicate the number of years the loan is fixed. After that the loan go to an adjustable. The way to get around the adjustable is once you approach the adjustable which ever one you decide to take, you should refinance your loan. You would have 2 or 3 years to get your credit together. If nothing else pay your mortgage on time and you can refinance with an mortgage only loan. I hope this had been of some use to you, good luck. "FIGHT ON"

by Skip

3 years ago

Asker's Rating: 

Are your parents in a position to be the lenders? You'd pay them and they'd keep a lien on the property like a bank would.

by sunshine_today- 3 years ago

Either your parents could be the lean holder for you guys or Countrywide could probably do it. They approve 4 out of 5 people. Just be prepared to pay a higher intrest rate. If you are first time buyers there is alot of programs out there for you. Even try lendingtree.com. They will find the best rate for you for your situation also. We just went through this last year and we don't have great credit and even less money. I think we put a total of $2500 out of our pocket! Good luck and congratulations!!!!!

by mamatovictoriadallas- 3 years ago

Yes, I've gotten one once. It wasn't too bad. Here's what I'd do differently. Have them sell you the home for $130,000 with a $25,000 seller carryback. That gives you a 19% down payment. You're almost there. If the appraisal will manage it, have them sell it to you for a touch more. (You want to cross the 20% threshold, it'll save you about 1% on your subprime loan). Also, include all your closing costs in the sale of the home. So, if it's going to cost $5,000 to close the home, you'll take out a loan for $110,000 and buy the home for 110,000 / 80%, if the appraisal covers that. Use a mortgage broker, rather than a loan officer in a bank, if you can. If you know any real estate people that deal in investment homes, ask them for a reference. They'll typically use someone that knows a lot of different programs, rather than just the basics. If your mortgage broker is having a hard time with things, make sure they know about weirdloans.com. It's a clearinghouse for tough to place loans. When you work with your mortgage person, he/she will look at why your credit is low. If there have been foreclosures or 30-day lates on a mortgage, then your rate will be higher. Otherwise, it shouldn't be too much worse than a standard loan. (say 2% higher , around 8-9% roughly). If you are ending up with a payment that is just too high, consider variable rate loans, interest-only loans, and possibly buying down the interest rate (with, say, a 2-1 buydown). You'll do great. Good luck!

by Geni100- 3 years ago

Yes there are companies out there, in fact, I do subprime loans on a daily basis. However, consider some alternatives first, before you get tied down to a higher than normal interest rate mortage. See if your parents could sell you the house direct - you would make payments directly to them. Try to find a local bank that may allow a little more flex on your credit scores and history. Consider even waiting - build your credit and your score up. Sure its' hard to pass up a good deal but when you take a hard honest look at the overall picture and how a subprime mortgage can really gut your lifestyle and your pocket - it may not be that hard to walk away. Now, if you are still set on moving forward feel free to visit my website and complete the application. But keep in mind - I would highly encourage to try and refinance ANY subprime loan as soon as you can - generally 2-3 years.

by gm1957- 3 years ago

Your best bet is to have your parents put the property into a trust and then sell the trust to you. You can continue paying their loan and make payments to them for the equity in the place. Regards

by satarnag- 3 years ago

YOU CAN RECEIVE A GIFT OF EQUITY FROM YOUR PARENTS, TO BE USED AS A DOWN PAYMENT. 130k X 20 % = 26K LOAN AMOUNT 104k MAKE THE HOME SALE PRICE 130K WITH A 20% GIFT, THE LOAN AMOUNT WOULD BE 104K. YOU SHOULD HAVE NO PROBLEMS. I CAN DO THE LOAN FOR YOU, IF YOU LIKE. RONDEL UNDERDUE CFIC HOME MORTGAGE 301.423.4623 rondelu2002@yahoo.com 1stMDLoans ... 575NoMoneyDown ...

by ron d- 3 years ago