my credit is bad, and have no income to show?

**mfiliuta** · 02-21-2008, 03:47 PM

I am looking to buy property in May in Pennsylvania with a friend of mine. Were going to be 50/50 partners, my credit is bad at the moment and I don't have any income to show. I am currently a real estate agent, do have money to put for down payment and closing, but I don't think I will be approved by the bank for a loan.

Does anyone have any ideas on how to go about this, or any other alternatives?

Thank you

**PPP** · 02-22-2008, 05:37 AM

If you and your friend want to buy together then I guess you need to find a way that will suit both your current situations, i.e. be flexible.

You say your credit is bad but you have the money for a down payment. If your friend's credit rating is good then maybe you could draw up a contract whereby you provide the initial financing but he is responsible for the mortgage payments.

Obviously the wording on something like that would have to be rock solid in case of disagreements down the line. Maybe you should talk to a real estate lawyer and see if they have any suggestions?

**carlam** · 02-22-2008, 05:53 AM

You should talk with a mortgage broker or loan officer for advice. Having bad credit and no income is a deal killer out of the chute! My advice - fix your credit! It's the most important thing you have!

**RobM** · 02-25-2008, 09:06 AM

If you both apply for a loan, the person with the worst credit will be the deciding factor. I would say that if your partner has better credit, use his/hers and then probably have a signed doc drafted by an atty that takes into account that the home is both of yours. Make sure you are on the title of the property (you can be on the title and not the note). As far as where the down payments and other funds are coming from, talk to a mortgage broker as programs are changing daily and they could tell you the best route to take.

Oh and by the way, hello and welcome to the forum from Tampa Florida.