What is a reasonable interest rate for a home loan for people with no credit, w/ a cosigner w/ great

me and my husband are wanting to buy our first home, neither of us have credit, his parents have great credit and are willing to cosign the loan, we just wanna know what is a REASONABLE interest rate.

What is a reasonable interest rate for a home loan for people with no credit, w/ a cosigner w/ great credit?

It all depends on how the loan is structured. It makes a difference as to whether your parents will be living in the home or whether it will be a second home for them. I also matters who the primary borrower is.

Here are some exmples of how it changes things:

Primary Home-if your parent are going to be living in the home and they have 750+ fico scores then you can get something beween 5.875-6.99% depending on the down payment, if any, and ther eincome.

Secondary Home- If they are not going to live there then the rate will typically be 1-2% higher then what is typical and you may not be bale to go with 100% financing.

You and your spouse as Borrower- This will mean that you will have to qualify on your own and your parents credit would be only used as a comensating factor. your rates would be somewhere between 7-7.99% and you might not qualify for 100% financing.

Your parents as the Borrower- This would help things and their credit would be weighed more heavily. The rates would be typical of a regular purchase loan.

BEWARE: Some brokers/lenders out there may try to structure the loan as if your parents are buying a home to live in when they are not. The lender WILL find out and you would be immediately in default, go into foreclosure, lose the house, and ruin your credit.

The best way to structure this would be for your p[arents to buy your home as a second home with 100% financing and then put you on title after the loan closes. After paying the mortgage on time for two to three years you could use the cancelled checks to qualify to refinance the home on your own. Your rate will be good in the beginning to help you get started and then when you refinance it might go up a littlem but not too much.

Call me to dicuss this in further detail and get pre-approved. My office number is 818-361-8585 (Just ask for Kevin)

What is a reasonable interest rate for a home loan for people with no credit, w/ a cosigner w/ great credit?

Well when we bought our home I had no credit and my boyfriend was even worse...but we got an FHA loan with a fixed rate of 6.25% for 15 yrs and we got a tax break on our home tell the 6th yr

What is a reasonable interest rate for a home loan for people with no credit, w/ a cosigner w/ great credit?

Having your parents buy the home as a %26quot;second home%26quot; and you paying them rent for two years is also FRAUD. That was a bad idea.

With a co-signer (non-occupant co-borrower, in mortgage lingo), the easiest and best financing is from the Federal Housing Administration (FHA). FHA loans are issued by banks and brokers, and you pay mortgage insurance to FHA. FHA in turn guarantees your loan to the issuing bank, so they have an incentive to lend you more money at a higher loan-to-value and lower rate than they otherwise would be able to.

An FHA loan right now would be in the 6.0-6.5% range for a 30 year fixed rate. DO NOT take a 2/28. That%26#039;s a subprime loan, and there%26#039;s no reason you should have to take a 2 year subprime ARM. In fact, you should avoid anyone who suggests one.