Posted on: 04th May, 2010 06:59 am
My fiance and I are trying to get a mortgage and we could really use some advice. He has a great credit score 760+ and I have a horrible credit score (I don't even know what the number is, but it's bad), the majority of my bad marks come from student loans (now consolidated and in good standing) and old credit cards from college and right after I graduated. He makes 29,000/yr and I make 43,000/yr. He's a grad student at Yale so hopefully his income will rise a bit once he finishes his PhD program (in about a year and a half) and finds a job.
The problem is that we'd like to get the loan completely in his name, because of his high credit rating and use my earnings as additional income on the mortgage application. The house we're looking at ($238,000) is a 2 family so we'd have additional rental income as well. We talked with one bank who told us that he could not use my earnings or the rental as additional income and since his yearly salary is so low, he wouldn't qualify for a loan for a house at that price.
Additional info: We'd be putting $20,000 as a down payment which is about $4,000 less than 10%.
Any suggestions? Or are we out of luck on this particular house and should look for something cheaper?
The problem is that we'd like to get the loan completely in his name, because of his high credit rating and use my earnings as additional income on the mortgage application. The house we're looking at ($238,000) is a 2 family so we'd have additional rental income as well. We talked with one bank who told us that he could not use my earnings or the rental as additional income and since his yearly salary is so low, he wouldn't qualify for a loan for a house at that price.
Additional info: We'd be putting $20,000 as a down payment which is about $4,000 less than 10%.
Any suggestions? Or are we out of luck on this particular house and should look for something cheaper?
Hi modestmuse,
Getting the home solely in your fiancé's name would be quite difficult as he does not have a good income. You can cosign for the loan and thus, your income would be considered while giving him the loan. This will help both of you in buying the property. However, you would be equally responsible for paying off the mortgage once you cosign it.
Thanks
Getting the home solely in your fiancé's name would be quite difficult as he does not have a good income. You can cosign for the loan and thus, your income would be considered while giving him the loan. This will help both of you in buying the property. However, you would be equally responsible for paying off the mortgage once you cosign it.
Thanks
Have you actually ran your credit. There are lenders that will still offer financing down to a 580 credit score. The rates offered at that score are in the mid 5's. You can't use the proposed income and without your income, the DTI on the file will be to high to get approved. You might want to run your credit and see what you're truly working with.
Hi,
You have not mentioned about your credit score clearly. Really your fiance has a good credit but in order to get a loan only good credit will not help. The lender will check the source of income and credit history also before providing the loan. First you pull out your credit report and if your credit score is 580 then you can get a loan and if not then you co-sign for the loan.
You have not mentioned about your credit score clearly. Really your fiance has a good credit but in order to get a loan only good credit will not help. The lender will check the source of income and credit history also before providing the loan. First you pull out your credit report and if your credit score is 580 then you can get a loan and if not then you co-sign for the loan.