We are renting a home from my in-laws. We are looking into taking the loan out of their names and putting it into my husband's. I have bad credit from a divorce. My husband has excellent credit. I am worried that my bad credit will hurt the chances of the loan being approved.
2007-09-19 11:32:26 · 7 answers · asked by Praying for a 2009 Miracle 2 in Business & Finance ➔ Renting & Real Estate
No your husband does not have to put your name on the credit application. He will not be able to use your income to qualify either, but if this is not a problem, then he can go ahead and file mortgage loan application just under his name. You can still put the title under both of your names, and you will even sign a few papers at the closing, but you will not be signing the note. Don't even bring up your credit score when negotiate with a loan officer.
Good luck.
2007-09-19 11:46:01 · answer #1 · answered by Alexander K 3 · 0⤊ 0⤋
Two things to consider, your credit score and your debt to income ratio. Credit score is a rating of how responsible you are with credit (bills, credit cards, loans, etc.) and they look at how much credit you have had and how you have handled it. Debt to income ratio is how much you can afford based on what you owe on bills every month (loans and credit, not your TV, power, etc.) divided by how much you make. Tips: Call a mortage broker or go on Lending Tree, Ditech, etc. and fill out an application. They will tell you how much a bank is willing to lend you by checking your credit, this gives you a starting point on your house price. If your credit score is low they will tell you exactly why (this is all free, they are trying to get your business) and how to fix it. Definintly use FHA, they will let you finance closing costs and require little to no down payment on a house. Any bank can get you a FHA loan. Your mortage broker (I like Lending Tree) will be your best asset, a good Realtor can find you a house, but they are not always experts on financing.
2016-05-18 22:20:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If he has enough income to support the mortgage, then no you wouldn't have to be on the mortgage. In most states you'd still be on the deed to the house and have to sign a paper giving him permission to mortgage the property.
2007-09-19 11:42:43 · answer #3 · answered by matzael 3 · 0⤊ 0⤋
It makes no difference who will live in the home, Your husband can apply for the mortgage by himself as long as he does not need to rely on your income to qualify. If he meets the qualifications on his financial merits alone then it's fine.
2007-09-19 11:43:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It depends how the Deed is registered. If you are a co-owner of the property, the mortgage company will certainly want you to co-sign the mortgage
2007-09-19 11:51:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You don't have to. As long as his income and credit will suffice to get the loan, there's no need to.
2007-09-19 11:40:55 · answer #6 · answered by skot302002 3 · 0⤊ 0⤋
If the house will be in joint tenancy (you and your husband) then yes, he will need to list you. If not, then no.
2007-09-19 11:39:51 · answer #7 · answered by Anonymous · 0⤊ 1⤋