A Waterbury bank recently referred a client they couldn’t help. This couple wanted to buy their parents’ home, but their credit scores were too low for this bank. The parents did their checking account business with this bank for many years, but it still didn’t make a difference.
They were offering the home to their daughter and son-in-law for $150,000, even though the true value was closer to $200,000. Nice parents! The parents had a small mortgage remaining and were willing to handle the down payment and the closing costs. Nice parents.
We did a 15 year FHA mortgage at 3% interest. There was no monthly mortgage insurance as the gift of down payment was over 22%.
Unfortunately, most banks and credit unions are credit score driven. When this is one of the main criteria that gets you to the door, the doors aren’t open. Delighted we could assist the parents and kids to accomplish their goals.
This article discusses the latest numbers on bank closings:
Mortgage Businesses Faring Better as Banks Endure
By: Krista Franks Brock
