lazy8 Posted October 14, 2003 Report Share Posted October 14, 2003 I'm in the process of cleaning up my mess of a credit score and have some wonderful family members that would be willing to co-sign if it will help me get a home loan for me and my daughter, but my limited understanding is that a co-signer only helps as far as income is concerned and not so much for circumventing bad FICO's. Is there anyway a family member could help? or is it better to just finish the cleaning up job and do it solo? Income isn't so much the problem as FICO score is Link to comment Share on other sites More sharing options...
firstsource Posted October 14, 2003 Report Share Posted October 14, 2003 Here is how it works basically. We take the person with the highest income, and use their FICO scores. The other part of the puzzle is that rates and LTV are determined partially by ownership of the property. If it is a non-owner-occupied the rate will be higher and the LTV will be lower than if it is an owner occupied property. So, it is not as easy as it sounds to use someone else's credit. One thing you might consider is going with a non-conventional/sub-prime loan for 2 years, purchase your home, then refinance at the end of 2 years. The loan can go on for 30 years, but is adjustible in rate after the first 2. Most people can raise their credit scores to over the 640 range that is needed for a conventional loan, if they work at it for 2 years. One thing that is going to make your scores go up is a mortgage that you have paid on time.Charles Charles Link to comment Share on other sites More sharing options...
Ravenous Wolf Posted January 18, 2004 Report Share Posted January 18, 2004 It also depends on your process of cleaning up your credit.Enthusiams for credit repair can wax and wane over time. Effective credit repair is contingent on how much effort you are willing to devote for six months or 12 months.Like, are you prepared to send out 10 letters to EACH CRA and send out as many letters that are necessary to OCs and CAs. And then do the same thing over again 45 days later subtlely altering your strategy for the next round of letters.Such intensity can do wonders for your credit in six months and even more so in 12 months. But it does require immense commitment and dedication. Link to comment Share on other sites More sharing options...
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