Can my parents purchase a house in their name and then refinance it with me in a 6 months when my credit improves?

You didn't mention what your actual credit score was. I can do a loan down to 600 with FHA and I can also lend in WI. Yes, I would also recommend NOT paying off the very old collection account at this time. The very Action of paying off the old account could drop your score further. Please feel free to contact me with any questions. barb.lanis@1amllc.com or 630-660-8868

if it would still supply a benefit. just be sure to have them include you on title when they purchase (quick claim deed), so you have seasoned interest in the property.

Yeah, you can do that. Have them put you on title and then when you have 6 months seasoning on the title you can refi the house into you name. What you can also try to do now as well, is try to qualify on an FHA loan with your parents as a Non-Occupying Co-borrower but the lowest score is the qualifying score. Not sure what your scores are but contact a LOCAL lender and they can structure it for you. The national lenders are just order takers and most don't have the knowledge it takes to properly structure your loan.

That's what that lender can go to but FHA's minimum right now is 580 so what you need to do is find a local lender that can go down to a 580. You'll need to call a few people to find one that has an investor that can that low as most kind of cap themselves about the 620. Your local banks and Credit unions and all the National Lenders generally cap themselves at a 640 so call around to some LOCAL Brokers that have a ton more options. I lend in Utah only and have 2 lenders that will go down to 580. Make some calls and simply ask them if they have an investor that will go down to a 580 fico and then if you do then the will be able to also do the Non-Occupying co-borrower.

See, Barb Landis can help you and she goes down to a 600. Have her help you with getting your scores up and it shouldn't take that long to get to a 600.

Your inquiry doesn't give anyone enough information to provide a great answer... But generally speaking, YES, you can do what you wish. Depending on the collections, you likely wouldn't be required to pay them off to get a loan. www.WI-MortgageBroker.com

Hi, Alot of factors would need to be looked at to achieve your goal. To really know, a person should analyze all the numbers involved in your situation and create a plan. We have a department that has a program of success in repairing credit so people can buy and refinance homes. My office is in Brookfield, WI about 35 minutes from your city. Contact me if you would like to talk about your situation and what needs to be done. Sincerely, Ritchie 262-754-3331