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My credit is good but my wife's is not and we made a little over 80,000 commbined in 2010. What are our options in buying a home?
She is a nurse and will always have a means for work. Is income stability considered despite her bad credit history
Answers
Hi Mario,
It depends on how bad your wife's credit is and why. It may not be as bad as you think so the only way to find out is to apply for a mortgage. If it turns out that her credit is too bad to include her on the loan, a good mortgage banker will offer advice on what you need to do to get her scores up. Please feel free to contact me for more info or help.
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John Burke
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6 months ago
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You have the possibility of buying a house now in your name only if your credit is good and you have a dependable job. Call me if you would like to talk to me.
Depending on the loan program you select the actual credit score may not have an effect on your ability to secure financing. If you are putting down at least 20% of the purchase price you will not be subject to mortgage insurance (PMI) - a program that requires stronger credit. Depending on the lender and how they handle their loans (portfolio or selling on the secondary market to investors such as Freddie Mac) the credit may have less of an effect than you think. If there are nay acounts in collecitons most lenders will require that those accounts be paid before they approve or commit on the loan. Speaking with a lender is a great place to start.
The best thing to do it is to consult with a mortgage specialist. They can help you find a credit repair company that will guide you step by step to be prepare to buy a house. A steady job is always helpfull. Maybe you are not far and options to buy, price wise are abundant.Good luck
There may be ways to help her credit score in a short run. I know of some companies that work with that. Taking that out of the picture, you would be faced with qualifying with your income alone. She could be used for down payments and closing costs.
Take your income and divide by 3 or 4 and that amount on a monthly basis is about what you can qualify for in a house payment (not taking into account the various ratios), but it will get you in the ball park.
I hope this helps.
ken Anderson
Assuming nurses average at least $60000/yr I suggest you enter into credit counciling to get your wife's credit to a satisfactory state since the best other option is to purchase a home in your name only but that will limit the mortgage to what you can qualify for on your income only.
The best person to answer your question is a mortgage specialist. If you don't know one, your bank maybe have a mortgage department and this is a good place to go.There are many different programs and they change all the time, again, a professional will be updated with all the options current available for you. Another possibilitie is to byu the property under your name only and again, a mortgage broker will let you know if this is acceptable by lenders.
The best place to start is with a loan officer. They will look at your numbers and guide you in the right path. It is based on your debt to income ratio, on what you can buy, if you can. Someone making $100,000 per year spending $10,000 per month, well they just can't make it. Good luck.
Mario, If you are both going to be signing papers, FHA would most likely be your best solution. There are lenders out there willing to accept 500-550 credit scores. You will pay a higher interest rate however, you can still get financing. You will need 3.5% down payment. However, the rest of the money can be a gift or seller assist from the owner.
Please contact us as we have lenders who can help.
Good Day,
Rob Hughes-Long and Foster Real Estate INC.
If you need both incomes to afford a home (and who doesn't?), both of your credit scores (FICO) must be good. Go to your local nonprofit housing group for credit counseling. The counselor will go over your credit reports with you. They will tell you what you are doing wrong and how to fix it.
When you have followed their advise and your wife's score goes up then visit a mortgage officer to get a preapproval.
Lenders pull all three credit bureaus and use the middle credit score. They then go off the lowest middle score of any borrowers on the loan. So your wife score will determine the loan that you can get. If you can qualify on your own you won't have to use that lower score. The better option is to start a credit repair program. You can do this on your own but I recommend Lexington Law or Credit Unlimited. This can take 90 days so start soon! Good Luck
It just depends on how bad her credit is for if it could be considered. The underwriting guidelines may not always make sense, but in this day and age the credit scores are more important than any negative credit on the report. The FHA which is considered the most lenient requires 10% down with under a 580 score and to use income for qualifying you need to be on the application, but it would usually make sense to get the score in line, because you will see a big difference in terms getting the score up at least to 600 and higher is better. The only real way to tell is to evaluate the credit, which is free, and the best way to do that is call my office 866-446-6333.
My advise is to contact a reputable and local mortgage lender. They can determine what mortgage you would qualify for and how much. They can also help you if you need credit counseling.
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