I filed Chapter 7 last summer in '06 and it was discharged in February of this year '07. I gross just under 50k a year. She makes about the same as a LPN. I'm an union utility worker. Both incomes are verifiable. My question is can she use my income and apply for a loan or does my name need to be on the loan application also. The reason I ask is we were told that even with her FICO score being at 685 and 8k for a downpayment we couldn't get a loan together because of my BK. Her debt to income ratio is high already because she has a very nice vehicle leased and a old car payment merged with the lease payment. She can't qualify for 140-150k loan we are wanting. Any suggestions or sites that may be able to help would be greatly appreciated.
2007-12-18 07:12:26 · 8 answers · asked by Palmdog 2 in Business & Finance ➔ Renting & Real Estate
She can not use your income, but she can overestimate hers to use some of it with a stated loan. However, to do this she will need to have 5% down, and 3% for closing costs.
You can get around the closing costs by having sellers pay them.
You can get a loan, but would need to have a minimum of 10% down, and the loan would be crappy.
Your best bet is to save as much money as possible for six monthes and put a larger chunk down. You will get a better loan and prices are dropping now anyhow. it will save you money.
2007-12-18 07:36:33 · answer #1 · answered by Ron B 3 · 1⤊ 0⤋
Unfortunately no ... the only way for his income to be used in calculating the loan amount is if his credit score also comes into play. HOWEVER ... most lenders are VERY eager to make loans on homes for several reasons ... first ... unlike other types of debt, a house increases in value over time and it's unlikely that enough damage could be done to a house to decrease it's value (if you take care of it) plus if you default on the loan they foreclose and they get the house for free and you get zero money back ... SO ... for all those reasons banks are often willing to loan you money for a house that they wouldn't loan you on other debt. At 150,000 a year your payment would be $875 a month (30 year loan ... but shoot for a 15 year loan or less if you can afford it) plus another few hundred for taxes and insurance. If you have a good credit score and are making $2900 a month you should have no problem getting a loan on your own for the house ... especially if you have money to put down on a down payment. If you can't put down at least 20% you'll be forced to pay PMI (private mortgage insurance) which will add about $500 a year (or $50 a month) to your payment until you hit that 20% mark. Recommendation ... get the loan done BEFORE you get married ... with his lower credit, it'll be much harder to get a loan once your married AND you interest rate could be 1 - 2 % higher than the 5.75% rate I used to calculate the payments above. Good Luck ... but ... you shouldn't have any problems. Additional info: Even at $2,400 you should be able to get a loan ... but ... it will be a little harder. And DEFINITELY it is a concern. His lower score will hurt you without question. Get the loan before your married.
2016-05-24 22:20:58 · answer #2 · answered by ? 3 · 0⤊ 0⤋
No, you wont be able to use your income due to your bankruptcy. However, if you go talk with a broker, Countrywide has a great program for borrower's with a 680+ score. Its called the Fast and Easy program. They wont verify her income, just that she has a job. However, you'll need to put down at least 5% plus closing costs. So the 8k you have to put down may not be enough. Although in todays market, the seller should be willing to give you 3% of the sales price back toward closing costs. (talk to your realtor, they'll explain in person how sellers concessions work.)
At least this loan is available in New York state still. However, i'd hurry to try and find it. The Federal Gov't is working toward getting rid of these programs for any borrower. Regardless if you have a 850 score!
2007-12-18 07:24:17 · answer #3 · answered by Mortgage Man 2 · 2⤊ 0⤋
I can help on this one, put the loan in just her name. If the credit profile looks good enough with 5% down there are a few lenders that will not document income.
$8,000 is 5% down, so that is covered. Just make the seller pay for all your closing costs and then you are fine.
Shoot me a quick email on my profile if you have any more questions.
2007-12-18 16:23:02 · answer #4 · answered by The Dragon 2 · 1⤊ 0⤋
There is no quick fix on this one. Since your married then both your credit history comes in to account. So 7 years then things should be better,plus she needs to pay down her debt too. If you do get a loan with your bad history right now then the interest rate will be sky high and you'll be getting ripped of big time. Good luck. MB
2007-12-18 07:20:56 · answer #5 · answered by MB714 2 · 0⤊ 1⤋
To consider your income, the lender will require you to be an applicant. Depending on what has happened since the discharge, there are lenders who will consider you. Try State Farm Bank. They're one of the most liberal when it comes to BK. Call any State Farm agent in your state for information.
2007-12-18 09:05:36 · answer #6 · answered by Debdeb 7 · 1⤊ 0⤋
Yes, you wont be able to file for another 7- years, so you are a good risk for the companies who want to loan you money..
2007-12-18 07:16:42 · answer #7 · answered by Michael F 3 · 0⤊ 1⤋
Your bankruptcy will prevent any loan for a house going through! She cannot use your income!
2007-12-18 07:16:35 · answer #8 · answered by Anonymous · 0⤊ 1⤋