Real Estate Home Mortgages/Mortgage transfer
QUESTION: About 4years ago I lost everything, including my home due to financial hardship. When all this happened my brother agreed to help me by buying a home under his name, the agreement was that I would transfer it to my name asap. I have been paying the mortgage since day one and I have all the documents to proof it (its been, 3 yrs now). The home has over 50,000 in equity. Would I be able to transfer the loan or buy the home withou a down payment, n what time period would I have to wait after my foreclosure to be able to purchase a home again, and lastly wat credit score do I need to have in order to achieve all this. By the way i'm a California resident, n the current loan on the property is Fha.
ANSWER: After a foreclosure, You have a 7 year waiting period before being able to do full conforming financing. On FHA loans, the wait is 3 years. Conforming financing is available within 2 years if under 80% LTV or 4 years if under 90% LTV as determined by the appraisal, however, the mortgage insurance may not available if you don't have 20% to put down. Credit score does play a part, but regardless off your score, the foreclosure wait time still applies. The minimum score varies by lender but is usually 640. I have read in certain cases of a parent signing on the original loan for a son or daughter and then the son or daughter makes all of the payments they can qualify for the transaction as a refinance, but I have not been able to find this for a sibling. I would have your lender or broker who you would have do your loan research this more, as there may be exceptions between lenders but I would say this would likely have to be considered a purchase.
You may also be able to get financing from a local "Community Bank" on a portfolio loan. That is where the bank loans their own money so they can make the call based on common sense instead of guidelines.
I did find an exception that would allow a refinance instead of s purchase if you have made All of the payments and have been on title for at least 6 months.
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QUESTION: I guess I didn't ask the right question. I want to be able to put the mortgage in my name either through a refi or name transfer. Now the question is, would I be able to use the existing equity as a down payment, would I be able to do a fha loan, and what requirements am I looking at with an fha loan. What credit score do I need, what closing cost am I looking at, mainly is it possible.
You can't simply change the name on a mortgage. The only two options are a refinance or a purchase, but which one you are eligible for is determined by the guidelines. Unless you were already on the title, you could not refinance as you are not the current financer/owner so you would have to purchase it.
You could not count the current equity as a down payment as technically it is not your equity if you are not on title to the property.
If you are in fact on title, and have been for at least 6 months then you could refinance using the equity.
As to the specifics of the closing costs and scores, you need to consult with a licensed mortgage broker in your state to have them assist you. That is beyond the scope of the advice that we can give through this forum as it is dependent on your particlar situation.
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here