Poor credit approval
Posted by admin on February 16th, 2009 at 12:00am
Question:
What is a better way to finance a house as a first time buyer and get poor credit approval?
I am a first time house buyer with bad credit. I will not get poor credit approval on my own. An associate has offered to either buy the house and I do a rent to buy deal with them or we could become co-owners. If we end up being co-owners, would they base the approval amount and interest rate on my partner’s credit rating? If he has purchased a home before but I have not, would I be responsible for the first time home purchaser tax credit if we end up being co-owners?
Answers:
It is more ideal for you to wait until you acquire a down payment before waiting for poor credit approval. You will be paying interest only and still be required to pay property tax and maintenance any problems that happen. Locate an apartment save up your cash until your credit is fixed. Then the house would be in your name only,
Just keep in mind that if you do go through with this it can turn against you if you don’t keep up on every single monthly payment on time for the next thirty years. That is really a huge commitment and you will never know what things will come up in that time: loss of life, health problems, etc. You cannot see into the future and to possibly ruin someone else’s credit rating would not be the best thing.
He would obtain the credit if he happens to be the primary. Now if he choose to give that to you that is his chose, but I think if he is offering you a favor he should get that credit and you should not.
I think this is a big mistake and I think you ought to rent and save up your cash and work on building your own credit overtime.
This is probably not be the answer that you would like to hear, but if you have bad credit, you should not purchase a house, regardless of any tax credits you may receive.