Good and Bad Credit Together

Guest 0.10 Dollars($)

Hello,

Me and my fiance have started to look around for a home to buy. However, there is one single issue that really discourages me. Its the fact that my credit score is bad. She has really good credit. However, my salary is more than hers. So they will not approve her alone for the loan unless there is someone else on the loan with her. However, I am not sure since I have bad credit if they would approve us together for the loan. Does anyone know if my poor credit score would prevent us from getting approved?[/list][/left]

livinginnky · Posted: Mon Feb 25, 2008 2:14 pm Post subject:

Depends on the total situation.

What are you and your fiances scores?

What are your job situations?

Do you have money down?

More questions will follow, but that is a good start.

Guest 0.10 Dollars($)

MY SCORE IS 560

HERS score is 750

WE BOTH WORK FULL TIME

I MAKE MID 60K A YEAR
AND SHE 40K A YEAR

WE ARE LOOKINF FOR NO MONEY DOWN BUT IF THAT IS NOT AN OPTION THEN YES WE DO HAVE MONEY TO PUT DOWN

livinginnky · Posted: Mon Feb 25, 2008 3:35 pm Post subject:

Ok, now it will depend on how much money down. You may need up to 40%.

Or

FHA may be an option.

What are the problems on your credit?

Do you have collections?

Judgements?

BK / Foreclosure?

How long have you been at your current jobs?

You should expect to be required at minimum to contribute 3% to the loan.

Guest 0.10 Dollars($)

I have been in my current job about a year. She has been with the same company for about 3 yrs.

As for my report I have collections ( I have paid a few of them off the last few months but not much change in my overall score) and one judgement.

banker0679 · Posted: Mon Feb 25, 2008 4:41 pm Post subject:

You can look into an FHA loan. they dont have a credit score requirement but most lenders impose them. This is why I would recommend that you work with a broker/lender that works with more than 1FHA lender.

All judgements have to be paid before closing date, and you can't reallly have any credit lates in the last 12months.

gmakerley · Posted: Tue Feb 26, 2008 7:55 am Post subject:

i would second the emotion of banker - moving toward an fha loan would be the wisest thing to do here, inasmuch as those loans are not as credit score-driven.

i agree, also, that you are going to be required to pay all your collections and judgments in full.

livinginnky · Posted: Tue Feb 26, 2008 10:29 am Post subject:

You will need to pay off the judgement.

What matters most with the collections and judgement is that they were not recent. If they are over 12 months old and you can pay them off. That is what will probably need to happen.

If you can do that and have 3% down... you should be able to get an FHA loan.

Good luck and let me know if you have any questions.

Guest 0.10 Dollars($)

would it make a difference if we took out the loan with her as the primary (since she has the better credit from the both of us) and me as the secondary on the loan (that way they can take my income into consideration since its the higher of the two)....

would this work out?????

banker0679 · Posted: Fri Feb 29, 2008 3:20 pm Post subject:

most lenders use the lower of the two middle scores to determine rate.

borrower A 700 750 800 750 is the middle
coborrwer 600 650 700 650 is the middle
lower of the two middle 750, 650 will be 650

Guest 0.10 Dollars($)

banker thanks

however i am unclear what your response means... sorry i am not good at all this stuff.... can you clarify?

her credit score is 770
mine 565

banker0679 · Posted: Fri Feb 29, 2008 4:12 pm Post subject:

565 will be the score they use

banker0679 · Posted: Fri Feb 29, 2008 4:12 pm Post subject:

some lenders MAY use the higher score

fireyone_02 · Joined: 20 Mar 2008 Posts: 267 -0.19 Dollars($)

It almost sounds like they would be better off using the wifes credit in this situation.

jbarto65 · Joined: 04 Nov 2007 Posts: 592 5.03 Dollars($)

Do they give you a choice? Can you decide what score to use. I thought the lender decided that, do they let the borrower choose?

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