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Advice on this situation?

we're selling the house to our renters that have lived on the property for about 6 years. The issue is that their credit score doesn't qualify for 0 down. Considering refnancing and add them to the mortgage. They've always paid on top so we're we expect they'd continue. by fmerges620 from Birdeye, Arkansas. Dec 4th 2020 Reply

Brian French (bfrench)
#11 ranked lender in Arkansas - 58 contributions

You wouldn't be able to add them to your loan if their credit score is not acceptable. Would like to know what their score is. Another option would be to sell them the house with a contract for deed. Property stays in your name but the purchase is recorded. Terms can be set up so that they could be paying down a part of the principal with each payment with the goal of eventually refinancing the contract for deed into a secondary market mortgage loan. If you would be interested in discussing further, I can be reached at or 501-701-4851. I am a local lender (offices in Hot Springs and Paragould)

Dec 4th 2020
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,423 contributions

STOP... DO NOT co-sign for these folks. Although they may have paid you rent on time, that is no guarantee they will make the mortgage payments on time. If they don't, your credit is going to get messed up an then you would have to go through the legal hassle of having them evicted, and it is likely that they home could be trashed before you regain possession. Instead, I recommend you follow Brian's advice. Reach out to him for guidance on a contract for sale. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we're pending approval in VA. ~ 480-889-9000.

Dec 6th 2020
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