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Well.

A rather interesting and intriguing opportunity came up yesterday, and I'm hoping someone here can provide some advice on the matter.

My parents are moving to a new home in my home town, since my father is convinced that my mother will outlive him, and we all know there's no way she can take care of the home place by herself.

This leaves the property I grew up on. My parents are looking to sell it.

It's 15 acres of wooded pastureland set in a very rural part of Louisiana. My folks bought it 30 years ago for $18000, and I think they're looking to sell it somwhere between 20-30000.

I want to buy it.

This is a simple matter, until one considers my credit history. I've never had a credit card, and I had a delinquent student loan. Bren has indicated that he's willing to take out a co-mortgage with me, but we're not sure what kind of legalities are involved here.

We both want this on our credit histories, since buying a home is a very good thing to have on there.

Does anyone know the ins and outs of mortgage law? Specifically, joint mortgages between two people that aren't married?

We can definately get the 20% for the downpayment, and we have a good lender in mind.

I'm tremendously excited about this- I have plans for the property and the house that I think my parents will be happy with. When I told them not to put it on the market, my mother was beside herself. :)

Comments

( 7 comments — Leave a comment )
frostyw
Apr. 14th, 2003 06:31 am (UTC)
Damn, that's a good price.
$20,000-30,000 for 15 acres? Damn. Go for it! :)

In New England, specifically the Boston area, you might be able to get a decent apartment for two for about that much. Just the apartment. Two-bedroom townhouses in neighborhoods like mine, 25 miles west of Boston, are going in the neighborhood (no pun intended) of $160,000-200,000, depending how much work was put into the house. A neighbor just sold her house last year for $159,000 and moved to Houston, and she probably even made a little on the deal. Last weekend I saw a townhouse in the neighboring condominum complex going for $202,000. Ouch. :P

I've just started socking away $300 per paycheck towards the downpayment on a place of my own; I've got a long way to go!

I don't know anyone who is well-versed in mortgage law, but if I should run across anyone who is, I'll run it by them.
was1
Apr. 14th, 2003 07:00 am (UTC)
Yeah, that's a great price, as another new-englander I'm jealous ;)

As for joint mortgages, I don't think there's a problem with the people not being married. A co-worker from a previous job and his fiance bought their house before they were married and they didn't have any problems. Another co-worker has a mortgage with his sister. I think two people can get a mortgage together and have both their names listed on it, so that shouldn't be a problem. Hopefully having Brendon there will help make up for your lack of credit history.

You could start talking to loan officers at banks and ask them about it, they could give you more information. Good luck with it!
aureth
Apr. 14th, 2003 07:13 am (UTC)
I would run this by Candice King (wife of Robert King, who you've met at FurFest meetings). She's a real estate broker, and if she doesn't know the answer, I know she knows mortage brokers. I'm sure she could come up with some good answers and advice for you.
aureth
Apr. 14th, 2003 07:14 am (UTC)
Whoops, got ahead of myself...

I don't have her email address handy, but poke me tonight and I'll get it for you.
nduli
Apr. 14th, 2003 07:25 am (UTC)
A joint mortgage can be made between unmarried people without a problem. Credit scores however can be tricky. The company I work for does huge mortgage loans(think over 1m) and I know for us a credit score needs to be in 6.5-6.0 range with some wiggle room if the person shows high assets and earnings.
Go to your local bank and see what they say, can't hurt to ask and put in a loan app. The price for the property is great and you should try and snag it if at all possible,
tygermoonfoxx
Apr. 14th, 2003 08:17 am (UTC)
Your Bren can take out the loan without you being on it. That is what we had to do with our place, because my credit history is the same as yours (damned student loans anyhow....) That would be about the only way I could see it getting approval. Otherwise, they're going to turn you down (been there, done that).

I believe Lousiana is a common property state so if something happens to either of you, the remaining other would still inherit the property. Simtra went one step further; if something happens to him, his life insurance that he gets from work instantly pays off the property, which will be mine to keep.

I seem to remember from my time as a benefits specialist that Lousiana also recognizes common law marriage so the above should apply to you. You'd have to look into it.

My advice, based on experience, is to not put your name on the mortgage. They won't approve you.

nduli
Apr. 14th, 2003 08:39 am (UTC)
I would be very careful about not putting your name on the mortgage. This is a large investment and I'm sorry to say it but relationships don't always work out. Not having your name on the mortgage/deed can result in you losing the property/equity if something happens no matter if you had been paying on it all along. Not saying that it will but it's always very important to prepare for anything that might happen when making such a large investment.
( 7 comments — Leave a comment )

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