Can I get a mortgage with poor credit but cosigner with credit scores of mid 700's but high DTI?

I am recently divorced and reestablishing my credit. I had scores in the 620 range until I disputed some inaccurate items on my report. Cleaning them off dropped my scores to mid to high 500's because of losing history. I also have limited income. My father offered to cosign a home for me; he has job history and credit scores in the mid 700's but high DTI. Is there any way I can still get a mortgage? We want my name on the loan to help build my credit. I have to be out of my apartment where I have been paying $800/mo rent and can own a home for about $650. I have found my dream home but it is $80000. Any help or suggestions would be welcomed! I do have a down payment if necessary from my settlement but would like to not have to use it all on a down payment.

Update:

David S-First of all, by the time I would save 80k, the house would be double that price and most likely NOT for sale! Secondly, going into debt to OWN something is far better than paying someone else's mortgage if I rent. And thirdly, did I mention I have 3 children who need a home as well? Maybe we can live with you since you suggested I 'just move in with someone'.

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  • 1 decade ago
    Favorite Answer

    my husband and i recently bought a house six months after being discharged from bankruptcy and had horrible credit scores. we had a 100% loan and also worked with the seller and we only had to pay $150 in closing costs. i believe that help is out there for everyone, you just have to look for it.

  • 1 decade ago

    Yes, you can secure that dream home with your co-borrower, your loan officer have to be able to structure the loan with both of your information together, and work with a lender that can do a no-ratio program. With your co-borrower's high fico score, along with your low score, often times if the loan officer have a great relationship with a specialty lender, they can work together and come up with a solution that would fit your budget. Now keep in mind that certain lenders would average the two fico scores and figure out which programs suites your needs. It can be done, with a lot of creativity. Good luck.

    Source(s): kmgloans.com
  • Anonymous
    1 decade ago

    Contact me and I will take excellent care of you. I am in the Mortgage Industry and will work with you one on one to get you into that home! Don't wait, timing is everything. Hope to hear from you.

    Jon

  • Anonymous
    1 decade ago

    What you state is fine. If you go stated income, you can take care of the high DTI ratio. However, if you have any brothers, sisters, step-mom, step-brothers and sisters, make sure the property will be yours or your childrens if he or you were to die.

    Regards

    Source(s): Satar Naghshineh satarnag@amirifinancial.com www.amirifinancial.com California Licensed Real Estate Broker and Investor
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  • 1 decade ago

    Live with somebody else until you've saved up enough cash to buy the place outright. You'll cut your longterm costs in half, or better, because you won't have any loan interest to repay. I don't know why you seem to think that going into debt is a "good" thing.

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