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How does one go about....?

I have a brother in law with poor credit and lack of a down payment. How would he go about obtaining a mortgage for a house that is worth way more than the seller is asking? He has a steady job (13 yrs), excellent rental history, etc. Is this possible for him to do?

3 Answers

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  • 1 decade ago
    Favorite Answer

    It should be relatively easy to make such a purchase for him or anyone.

    The whole thing with borrowing is the ability to repay the debt (credit history) or collateral (the house with a market value exceeding purchase price)

    He has an excellent ability to repay the loan if they were forced to foreclose.

  • 1 decade ago

    If you brother has credit score over 580, he can get 100% financing.

    If you brother has a score between 500 and 580, he is either going to have to come up with a down payment, or get the seller to agree to carry a second loan for the difference.

    If your brother has a credit score below 500, then regulated lenders will not do business with him.

    According to lenders, houses at purchase are worth the LESSER of the appraisal or the purchase price. Period, end of discussion. People play games with this all the time, but when it is discovered, they go to jail for fraud.

    Source(s): Loan Officer and Realtor in San Diego. Website http://www.danmelson.com/
  • 1 decade ago

    yes

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