So I'm in an odd situation. My mom, who has cancer, was about to be foreclosed on by defaulting on her HELOC. Not wanting to lose my childhood home and seeing an opportunity to get into property ownership, I offered to take over the house. Due to my poor credit, I couldn't go about the usual mortgage route and did a contract sale for $90k where essentially a third-party is a mediator and deed holder. They pay down the HELOC on my behalf, then they'll start paying my brother who is owed $20k. At the end of the note the remaining $20k goes to myself (so I'm essentially paying myself). I'm planning on putting that money right back into the house as it's a bit of a fixer upper. The goal of this setup is to basically liquidate the equity of the house so that my brother can receive his inheritance from my mom.
I have been in the house for about 18 months now and haven't had any issues so far. However, I want to finance the house, settle the contract (which includes paying off the HELOC and my brother), then use the rest of the loan to make repairs on the house.
I practically have nothing in savings (in terms of a down-payment) and I understand that banks prefer to have down-payments or they incur extra fees. I have people with excellent credit in my life who are willing to cosign.
Is there a loan that allows me to pay off the $90k contract that doesn't involve a down-payment?