My husband and I want to buy a house, but how? Please read below.?

Question

I have excellent credit (high 600-low 700) but no job. My husband has poor credit (mid-high 500 but has things in collections because of his ex-wife) but he has a good job. We'd like to buy a house. However, they only look at my credit and require 15% down, a PMI, and 7-8 % interest rate. When they do it this way, they don't look at my husbands income. Is there another way?

I have excellent credit (high 600-low 700) but no job because I'm a stay at home mom( 6 year old and 6 month old). My husband has poor credit (mid-high 500 but has things in collections because of his ex-wife) but he has a good job. We'd like to buy a house. However, they only look at my credit and require 15% down, a PMI, and 7-8 % interest rate. When they do it this way, they don't look at my husbands income. Is there another way?

have excellent credit (high 600-low 700) but no job because I'm a stay at home mom( 6 year old and 6 month old). My husband has poor credit (mid-high 500 but has things in collections because of his ex-wife) but he has a good job. We'd like to buy a house. However, they only look at my credit and require 15% down, a PMI, and 7-8 % interest rate. When they do it this way, they don't look at my husbands income. Is there another way? We live in Ohio.

My husband has to much debt from the ex. He's in the process of filing for bankruptcy because of it. His father and stepmom have 3 bankruptcies between them and have bought a used Caddy, new truck, and a house within a year of filing for the last one. We've tried paying off the debt ourselves, but she racked up quite the bill on him and even had the truck he gave her in the divorce repossed. When we thought we were catching up, more came up from his past. No new debts. I have no glitches on my credit. With two kids, a rent payment, one income, and two cars (fully payed off) saving money for 15% down is hard.

I have heard of housing grants for people with our problem (Mamaw said it was something with a "biblical like name". know anything about this? We live in Ohio

Answer 1

This is where you need to speak with a mortgage broker and not a bank. There are programs out there such as low or no doc loans or stated loans. Banks typically offer traditional products with traditional requirements, which are great if you fit the mold but if you have special circumstances then try a broker.

Answer 2

They will take the lower of the two credit scores. I don't know what they are telling you but if you buy a house together it's the lowest score that counts and the combined income.

If you have a good loan broker/bank they will dig a little deeper and make a better presentation to their underwriters but it's will only help a little. This is probably why you guys are even able to qualify for the loan offer described in your question.

So your lack of income coupled with his poor FICO score is causing you problems with really no short term solution.

I would suggest taking a year to:
1) do the best you can to fix his credit score.
2) save for a bigger down

The higher his credit score the lower your interest rate and the bigger the down the more able you will be to combat the PMI though it usually takes 20% equity to lose the PMI.

Answer 3

Actually you are being given a good deal all things you say being considered. You could also consider owner financing. Your Realtor could look for listings in your area where the owner will consider financing. There will be many Mortgage Brokers out there who say they can do it. They will run your credit report and come back with higher rates. By then you are worse than when you started because now you have an inquire on your credit report which will drop your scores. That in turn will cause you to loose the first offer you are talking about above. You have to be very careful to shop mortgages. Beware of the predators! Find a Realtor you like in your area and are comfortable with. They only make money if their clients can get loans. That fact makes them keep up with the lenders and mortgage brokers in the area.
There is not a lender out there that will accept your husbands income without considering his credit also. Think about fixing his credit and refinancing in a couple years to lower the note. The interest on the mortgage is tax deductible and the house hopefully will increase in value in a couple years to make up for the extra interest you will have to pay for the first couple years.

good luck in your adventure.

Michael

Answer 4

Your answer doesn't lie here. Sit down with a real Loan Officer... take complete application and talk everything through. With all info on the table, you can game plan a strategy and move forward.

Answer 5

Hey..........
500 Fico is ok for having a 100% financing...I can do that ...

regards,
kish garner
Acacia Mortgage
[e-mail]
480.751.4125

Answer 6

well get a job thats fun but makes good money