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get approved????


payinbills
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My wife and I want to buy my mothers house.

She has agreed to quit-claim the deed to us, then let us take it to our bank for a refinance loan. My mother owes about 80K on her loan, so I need to get at least that to settle her with her bank.

We would like to get a loan for about 130k so we can can pay her off, and have some money to fix the place up. The home appraises for $140k

We both have credit scores in the upper 500's low 600's. Several charged-off accounts a piece BUT we are completely out of debt. We have settled with everyone we have ever owned money to. Our credit history just sucks.

Do we have a better chance of getting this loan with the quit-claim scenario than we would if we tried to buy a home outright????

Does it sound like I'm in posistion to get the $130. We can certainly afford it, our income vesus debt says so.

Thanks for your input (fingers crossed)

Payinbills!

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My main thought is that your LTV would be high because you are wanting to take 130K out. Depending on your actual FICO scores, you may not be able to take out that much. You may be able to get away with a combo loan, but expect inflated rates and the possibility of paying origination points.

Maybe a carry-back?

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One Idea would be to purchase your home for full value, have her give you a gift of equity of 20%, so the interest rate is not too high. Have the contract state that the seller pays the closing costs. Then what is left over, she might lend your wife to use to do some fix ups etc.

Charles

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