What do we do? - Posted by Laure

Posted by Vic on April 04, 2000 at 19:11:03:

Why don’t you try to get them an FHA loan. You can get an FHA loan without any credit, so long as you dont have any bad credit. You can leave off the wife & do it just in his name, assuming the house meets fha guidelines.

What do we do? - Posted by Laure

Posted by Laure on April 03, 2000 at 21:12:51:

I have a L/O Tenant who has been in the property for a year now, and has one more year left on his Option. Mtg broker told me/him that he has NO credit. Buyer is 31, and has been on the job for 8 years. His ONLY credit reference is ME ! his wife/fiance has the utilities, car, etc. in her name. Her credit must be bad, because they don’t want to use it, I don’t know.

What can we do to get this deal finaced before another year passes? I heard somewhere, that you can “add” someone to your credit cards etc. and that “good credit” will be shared. Is this true? Any Suggestions???

Laure :slight_smile:

Re: What do we do? - Posted by Doone

Posted by Doone on April 04, 2000 at 20:06:41:

I got an FHA loan for my house, in my name only. Past credit wasn’t too shiny, cars are in my husband’s name. The mortgage co. actually accepted a good referral from our car insurance agent to show some credit! (I was listed as a driver :slight_smile: ) Worth a shot.


Sell NOW if you want to… - Posted by Michael Morrongiello

Posted by Michael Morrongiello on April 03, 2000 at 22:52:14:


There is a big difference in evalutiing someone as a prospective buyer where they simply have NO credit established at all whatsoever OR an individual that has very No current credit trade accounts open and who may have some prior derogatories showing.

Assuming this is legimate lease option agreement that can be formally documented then with some sort of documentable proof that this tennant has paid the rent timely and if the rent amout payments would be commensurate with what a mortgage loan payment would be then this is a perfect opportunity to finance this sale yourself with a seller carry back note or notes (2). That 1st lien note then is converted into cash.

This may allow you to sell now rather than have to wait another year. However don’t expect a note funder or any lender for that matter to finance this type of No credit buyer at a 90% LTV threshold. You may have to participate in holding some of your equity in the form of a smaller 2nd lien and this might represent some of your profit to you.

Remember that not having the use of your cash for other investment opportunities that might come along because it is tied up into this property for another year is a COST to you as well and needs to be seriously weighed.

To your success,

Michael Morrongiello

Re: What do we do? - Posted by Doug Pretorius

Posted by Doug Pretorius on April 03, 2000 at 22:47:39:


  1. You co-sign (sharing your credit.)
  2. Someone else co-signs (e.g. relative) and shares their credit.
  3. Sell it on a wrap.
  4. Obtain financing yourself and transfer the property through a land trust (assuming I understand how that works correctly, check with Bill Gatten.)