Trying to refinance asap but bad credit. Put family on title?

Question

I have been trying to get a refinance for over a year , after being denied at the last minute by Quicken loans I am trying just about every avenue possible . Wells Fargo froze my bank account so I was unable to make any payments on my credit cards there for ruining my credit score in one month. I just dissolved my LLC to add my father to title which will take at least 7 to 8 months before I can even apply with the dissolving and adding process. I am wondering if there's any easier way to go about getting this refinance .

My father is a veteran I'm wondering if it would be good to have him on title since he is eligible for %100 LTV.

I am not intersted in getting a hard money loan because of rates .

Also , I own the house out right with no mortgage payments

Thanks

My father is a veteran I'm wondering if it would be good to have him on title since he is eligible for %100 LTV.

I am not intersted in getting a hard money loan because of rates .

Also ,  I own the house out right with no mortgage payments

Thanks

Nicholas Covington · Answer

@Ean McNaney

If you Wells is truly at fault for the situation I would go back to them to see if they can fix it. It could be possible to make a deal to just pay what ever they were not able to collect due to their error and have them contact the Reporting Agencies and fix the mistake. It should be possible to have them remove it from your record, they would only be able to do this though so getting them on board would be the first thing to do. I  don't see a reason on why this would be a problem if they were at fault and you have a clean record of paying them.

If you father is "living at the residence" than he should be able to get a VA loan no problem. Credit is not really as big of a factor for these types of programs as it is govt backed and they give a little bit more of the deserved blind eye to people who serve our country.

If he has entitlement left over and shows ability to repay, they will pretty much give you a VA loan. As far as a cash out refi, I am not completely sure the limitations of what is allowed to be done with the funds of this type of program.

That would pretty much be the only help he could provide if his credit is not so hot as well. Unless it's higher than yours he could got the FHA route, but depending on the score it might just be the same as if you were to apply. But he might have better chances to just make it to the approved side, just not as favorable as a VA loan.

Stephanie P. · Answer

@Ean McNaney

Carrington Mortgage Services does a tremendous amount of manual underwriting and may be able to help you.  PM me and I'll get you the number for a guy I refer all of my FHA, VA and USDA business to in Maryland, DC and VA.  He'll be able to sort out a path forward whether it's using your Dad's VA if he lives in the property or helping you get qualified using FHA.  I know they go down to 550 score on FHA with 10% equity.

Not a solicitation.  US Commercial can't do these loans.  Just a referral.

Stephanie

Ean McNaney · Answer

Hi Nick

Yes the reason why i am adding him to title is because he will then be applying for the loan and i will just receive it through him as if he owned it and had 100 equity in it like i do . As far as my credit goes to be honest I'm really devastated because i worked on my credit hard for so long and Wells Fargo froze my account with because of a mistake they made but then kept it frozen for 45 days or so , because of that i obviously could not make payments to them and thats why my credit is so poor now . If you have any suggestions to help with my credit situation that would be great , it seems like i am just going to have to switch careers because of this .

The loan i am applying for would be FHA or VA or really any type that i would be eligible for , to be honest i have been getting denied so much I really don't have much faith in any bank or loan program . My Father does not own a home and also disabled veteran income ( $3400 ) a month to help possibly getting approved but his credit is not great either . I thought getting a loan with %100 equity would be a little easier .

Anyway thanks for the reply

Ean

Nicholas Covington · Answer

Hello Ean!

I'm sorry about all the trouble you are going through trying to refinance.

Title would have nothing to do with trying to get a loan from a lender. The title would just mean that they have ownership of the given property. I think you might just be referring to having a co borrower to help ease the process of obtaining something from a lender. To be honest if you credit is shot than no co borrower can help you in that aspect, as you would always be the qualifying credit score that the lenders will be using. To offset this you would need to have some other pluses to bring to the table such as a large amount of assets.

Since you own the home then I am also going to assume you are trying to do a cash out refinance. What kind of loan were you trying to apply for? A FHA program has a lower credit requirement than most other program. I am not sure what your credit score is, but I would really try to fix that first before doing anything else.

The only other option I might see is to have your father try to qualify for a loan on his own if you are going to add him to the title. Getting a VA loan might be hard though since he would technically have to have that home listed as his primary residence, which might be hard to prove if he already has his own home.

Hope this helps.

Nick