My husband has a credit score less than 500, it's like a 450. My score is in the 600's. Do you think we would get a loan for a mortage? Our income combined is at least $80,000.
2007-08-08 09:27:18 · 6 answers · asked by Happy 1 in Business & Finance ➔ Renting & Real Estate
10 years ago I woulds say yes but in todays market I would say no. Financing for the subprime market has been cut off completely, and recently Alt-A credit has been severely restricted, ie people with decent but blemished credit being turned down. Another thing to consider is although your income is up there what is your debt ratio?
2007-08-08 14:17:02 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
They've recently made it a bit harder to get a mortgage than it has been for the past few years. However, I'd definitely try--owning a home is great-- but you may have to do it under your name only, the score of 450 for your husband is probably too low. Be honest with your loan officer, they will try and work with you. They may be able to suggest a few things to improve your credit scores and then you can try again in a few months.
Beware though!! There are some lenders who will give you a loan even with a bad credit rating--and they do it with terrible interest rates and loopholes. Read up and become knowledgeable on mortgages so you won't be taken advantage of-- and don't settle for just anything!! Good luck!
2007-08-08 09:36:55 · answer #2 · answered by mako 1 · 0⤊ 0⤋
Do you need his income to qualify for the loan? How much are you borrowing vs. how much does it cost, ie. how much are you putting down?
If your husbands income is higher than yours, and you need him to qualify for the loan, then the answer to your question would be no, you cannot do regular lending. If their is some reason his score is so low and you can prove that you are good for it, a realtor probably can find you a hard money lender. This loan will be from private investors and their interest rate is really high.
If you can qualify by yourself then do not even put your husbands name on the loan. Depends on where in the 600's your credit score lies.
General rule of thumb, no bank will loan money to anyone with a credit score of under 500. But honostly, you have to work hard to get your score that low. Maybe his score is higher.
2007-08-08 09:34:45 · answer #3 · answered by Thomas K 3 · 0⤊ 0⤋
The first thing a broker will ask of you is whether or not you can find another co-signer. If your husband is good with finances and there was some legitimate reason for his credit score lowering, you could have someone else co-sign and offer that person a portion of the money you will save by utilizing their credit score.
If you want your husband to work hard at getting his score up, get a good looking male friend to do the co-signing. Watch your husbands motivation!
If your husbands credit score is reflective of his relationship with money, you will be doing yourself a disservice to buy with him.
2007-08-08 10:31:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Talk to a broker and they usually have programs that are open to bad credit buyers. However, them scores are very low and we would probably not approve you. Before you purchase a home, the broker will tell you before he approves you for a loan, make all your payments on time. 30-day late payments will affect your score dramatically. Also, you have credit from utilities you pay now. The electric, telephone, etc. companies have records of how good you are about paying for your montly bills. The broker and lenders may take this into consideration also.
2007-08-08 10:21:07 · answer #5 · answered by Bird Questions 2 · 0⤊ 0⤋
Unless you can qualify for an FHA loan (if your husband's credit is clean for the last 12 months) you might consider using just your income and information. Mid 400s is not going to qualify for anything but a "hard money" loan, and the rate and terms on those are not pretty.
2007-08-08 09:32:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋