I am in the process of selling one of my properties to the renter that is living in it. We will be trying to get him qualified at 100% LTV with me contributing enough cash to cover his closing costs if his credit score is high enough.
He will need a 680 score to do a stated income application so he can tell them that he earns enough to cover his monthly PITI without exceeding 50% of his gross income.
If he has high enough provable income (about 48k a year gross) then we can get him a full doc. Loan and his credit score can be much lower for that kind of loan program.
So bottom line is – I will be selling him the house for no money down and I pay his closing costs. My break even sale price is about 90% of the value we hope the house appraises at.
The latest news in the mortgage business is that they are desperate to give out loans now – even with lower credit scores. Because all the ReFi business has died down. So they need customer to come back and they will get more flexible to work with you.
