Arms Length QuitClaim And Refi Rejected By Lenders, Is There Any Alternative?
Hi, I recently needed to tap into my equity from my home i have owner occupied for 2 1/2 years. My credit hit rockbottom and refi rates were not favorable, however, my equity was substantial. The goal was to lower mortgage and cash out 100k to payoff CC debits, taxes, and a judgement.
I tried to Quit Claim to my brother who has superb and sound credit with large assets. As we were working with the mortgage broker to retreive an interest only loan of 300k plus 100k out, an appraisal was scheduled, the next day I was informed that no lender would fund this loan of interest only
100k cash on 80% LTV for investment property due to Arms Length. The alternitive they suggested was for my brother to purchase the house and that would require over 100k down to escrow even though he would get it back, this was not what we wanted to do. All we were attempting was for my brother to help me get a better rate and clean up my credit so the house could be suitable as a rental or reasonable mortgage and a good prperty to build my future portfolio. At this point reletives suggest to sell quickly and enjoy a sizable gain. I would rather take my time to sell or really prefer to keep the house in a good area of fast growing city. Just need some insight or input to feel I have covered possible options. Thank You. 
This is a NON Arms length transaction. Leave yourself on the deed AND put your brother on the deed BEFORE You refinance. The bank can use his credit and your income.
This is a NON Arms length transaction. Leave yourself on the deed AND put your brother on the deed BEFORE You refinance. The bank can use his credit and your income.