This sounds like it is certainly a loan made for FHA. Since you and your brothers already own the home by inheritance the only thing necessary to have completed is a new deed which the lawyer handling your mothers affairs can complete.there is no need to buy the property. There will be the matter of estate taxes etc but this will have to also be handled by the lawyer. In order to pay your brothers for their share of the home, assuming they do not want to be on the deed, you can do a cashout re-finance and receive up to 85% of the value. This would of course depend on your income and debt ratios and meeting other guidelines to qualify for the loan. If your credit scores are indeed in the 625 or higher range you should qualify for FHA financing. You should discuss this in detail with an FHA approved lender whom you feel comfortable with.

With scores like that I would recommend an FHA loan depending on exactly where you fall. With conventional financing there will be no mortgage insurance, but they will need higher scores. FHA may have a small monthly mortgage insurance fee, but would do the loan with scores on the lower end. This is assuming your income and work history are acceptable.

Yes you could use less of your 20K and save that for emergencies with using a FHA 3.5% down payment loan.You could also use VA if you are a Veteran with zero down payment.

Call me 734-384-1000 Daniel @ Bank of America Home LoansNo need to put money down ask me why??

This should definately be attempted as a conventional loan. Your score will be above the bare minimum and you could hold the $20,000. as asset/reserves. Title issue would have to be cleared up by the attorney (specific documentation that you are entitled to 33% of the sale). Your interest rate would suffer due to the scores but the increase in your monthly payment on a mortgage of this size would be smaller than the monthly MI and the 1.75% that FHA will add to your loan for their insurance fund.

Since this is an inheritance situation, you should be able to obtain conventional financing with no mortgage insurance as your brothers could provide you with a "Gift of Equity". You would be PURCHASING the property for $127,900 from your brothers, they would "Gift" you the equity in the home of roughly $42,000 leaving you with less than 70% LTV (your credit score should work at that LTV). You could even reduce the "Gift" increase the loan amount and have them pay some closing cost on your behalf. You would avoid private mortgage insurance and minimize cash out of pocket. Good Luck.

Well here is an update, I was talking with PNC mortgage and when they ran my score it turned out I was at a 541!!!!! So they told me to piss off. Now I did get copies of my report and there are many things that should not be there, so I spent last night disputing them. So now I guess the next question I have is will my score take a hit again if they run another credit check after these items are removed?

Good Morning - our minimum credit score for most programs is 620, so you should be fne there.. if you are in Texas i can assist in your Purchase transaction to "buyout" your brothers.if you are not in Texas... i would recommend a local banker such as a W R Starkey in your area. if you would like... email me your location and I will look around for you.my email address if djoaquin@wrstarkey.comThanks! Dianne, Sr. Loan Officer