What are the requirements of unmarried couples securing a mortgage?

dbmeyers314 · Joined: 12 Oct 2009 Posts: 1 1.33 Dollars($)

My girlfriend and I want to buy home.
I have excellent credit and income enough to qualify on my own for a mortgage.

Now we found out her parents are willing to give her 20,000 toward a down payment.

Her credit is average/poor at best and her income the last couple years is under $10,000.

Is there a way to still use her 20,000 and still qualify for the best interest rates with my excellent credit rating?

Looking for best way to proceed.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1735 35.94 Dollars($)

You cna do this with out puttign her name on the loan

You cna always show that the $20,000/- as a gift or somethign you borrowed fromher and use it for down payment. If your income is good and as you said you have good credit, use it get the loan and probably you will qulify for a good rate

You can later do a quit claim deed and add her name to the property. She will have equal partnership in the property at that point

Make sure to have these terms documented and singed by both the parties on a legal paper. Incase things change in between, you both are protected

jenkin7 · Posted: Mon Oct 12, 2009 10:43 pm Post subject:

Hi dbmeyers,

You can add your girlfriend on the mortgage, even though her income for the last few years is under $10,000. If your income is sufficient enough to help you afford the mortgage, her income will not be a problem. However, what could be a problem is her 'average/poor' credit score. What is her middle score? She needs to have a score of somewhere around 620 in order to qualify for a mortgage.

The money her parents are gifting her can be used as a down payment. If your scores are good, you can expect to get a good interest rate on the loan. Besides the down payment, if you can afford to pay a few discount points upfront, that will reduce your interest rate further.

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