Help I need advise from anyone who has used their credit score to help a buyer puchase property. How did it work out for you…profit-wise, tax-wise, etc.?
If you are securing a loan for them, what you need to do is set up a joint checking account which you pay the mortgage out of and get them to fix there credit, within 6-12 months they can refi not purchase because the mortgage payments are coming out of there account and shows a good history (They have a vested interest in the property). As for tax consequenses you are not selling it to them so you should be able to avoid capital gains, but speak to your CPA. state laws maybe different. If this is a deal you are going to make money on wheather up front or on the back end you may have to pay a little something something on that, but talk with the CPA. If they have poor credit and there is judgements, tax liens or serious derogatories, they may not ever be able to hold title unless they satisfy or negotiate it. What are the reasons for using your credit scores. Also set up a lease agreement to offset the DTI otherwise you may have some difficulty if you want to do another deal and there is not enough income to offset the mortgage.