One of my major issues with home-buying is that I am about to marry a man whose credit score is most likely not good (he's had many unpaid bills that went to collection agencies, and he's had some fraud on his SSN). My credit score is great. If we decide to buy a house, and he's fine with my being the sole owner, is that possible? Can I buy a house on my own merit (or with someone else co-signing on the loan) without involving my husband? Or do they automatically look at my husband's credit rating as well?
2007-02-21 05:22:00 · 8 answers · asked by Sophie832 3 in Business & Finance ➔ Renting & Real Estate
I had the same issue and my husband and I got a "no-doc" loan which puts the mortgage in your name, but the title (& deed, I think) in both of your names. This way, the mortgage companies will only look at your credit and salary & his credit will not affect the interest rate. Here is a helpful site too to research loan information. http://loan.divinfo.com/ Good luck!
2007-02-21 06:03:26 · answer #1 · answered by Reenie 3 · 0⤊ 0⤋
If you income is enough to qualify for a mortgage without his then yes you could buy a house on your own. If you live in a community property state they may require he release his homestead rights to you. If you need both incomes to qualify then his credit score will be looked at. Have him get a copy of his credit report now and start seeing what you can pay off to clean it up. I was amazed when I went to buy my house that there were so many errors on it that really made a difference in my interest rate. Don't wait until you find the house you want to check your credit do it now while you are just thinking you would like to buy sometime in the future. And once you marry see if he will let you take care of the bills to make sure your credit rating is not lowered and see if you can get his up.
As for the fraud, get a letter from the bank or other companies that had the fraud stating they do not hold him responsible for what happened or a police report if he filed one and the credit bureaus will remove those items from his credit report so they don't show up either.
2007-02-21 05:36:57 · answer #2 · answered by idaho gal 4 · 0⤊ 0⤋
Rest assured you an buy under your own name, as long as your income and job time is good. 2 years job time is needed. Make sure you can qualify under your income and your DTI (debit to income ratio is with-in the Lenders guidelines. FHA and Conforming is lower, where as going sub-prime can be up to 55 percent.
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
ALSO -
When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - Just depends on your credit. You could get a lower interest rate or it could be higher - it is all based on credit. It is up the Lender what they offer you.
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees. Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for 1 YEAR . The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, broker fee, processing fee, flood cert, etc can be paid for by the seller.
Websites to check out for first time homebuyer guide.
www.fha-home-loans.com
www.fha.gov
2007-02-21 14:00:08 · answer #3 · answered by W. E 5 · 0⤊ 0⤋
You can buy a home on your own credit as long as your income supports the payments. Even if they don't if your credit is good enough you can go stated and still get financing on your own. You can always add him to title/deed so he has some feeling of ownership along with you. When his credit is better you can refinance and add him to the loan if you want to get some cash out or try to get a better rate with some mortgage history under your belt.
2007-02-21 06:26:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋
My personal experience with this was that I had bad credit and my boyfriend had excellent credit. We were able to get a mortgage, but our interest rate was a little higher. You can be the sole owner, but you might need both of your combined salaries in order to qualify for the mortgage (depending on how much you need to borrow). Once your husband's credit has improved you can refinance and try to get a lower rate.
2007-02-21 05:27:20 · answer #5 · answered by Cruiser 68 4 · 0⤊ 0⤋
You can pursue the mortgage on your own... you may qualify for less, but your husband's credit wouldn't be a burden to you at that point.
After you obtain the loan and the home, you can add your husband on the title.
If you spoke with a lender, they'd tell you to get it on your own too. They may even suggest going with a "Stated" loan, where you do not have to prove how much you make, so your combined income can be used, unlike if you went with a traditional loan on your own.
Good luck, and if you need any clarification, please let me know!
2007-02-21 05:30:06 · answer #6 · answered by Art 4 · 0⤊ 0⤋
ultimate issues to do is the two in simple terms follow for pre approval or get in touch with a realtor. My spouse and that i did that at present and at the instant are in a alluring domicile. you will possibly be able to comprehend that your credit isn't as undesirable as you think of this is. i think of a lot of what own loan agencies seek for is debt to earnings ratio. We did no longer have something different than a motor vehicle own loan so we've been sitting notably as far as that went. you need to be in incredibly reliable shape including your husband's VA own loan.
2016-10-16 04:32:34 · answer #7 · answered by ? 4 · 0⤊ 0⤋
You put him on title not the loan. Its that simple.
2007-02-21 05:31:02 · answer #8 · answered by orderless1 1 · 0⤊ 1⤋