Good Credit With A Bad Credit Mortgage Co-signer
My question is.. my credit score is increasing every month and by next year I will be purchasing my first home. My husband is very careless with his credit. His score is in the 500's the last I checked. When we go for our mortgage, I'm afraid that I will be the one getting the loan because of his poor credit. Is this true? I need his income to be able to qualify for a much larger loan. What are my options?
When you look for a home, look for one where the owner will "carry back" the mortgage.
Otherwise there is not much you can do except get another husband.<G>
BOB FORD
Keep and maintain your credit seperate from your spouse. Should he become even more upside down with his credit than what sounds it now sounds to be you might well need it. If you live in a commumity property state his credit will be very much critical. If it is not, do it on your credit, or get a non-qual loan, l/o or seller finance, Meanwhile work on getting his credit improved. Good luck to you.
if he is willing to discuss it, show him the difference in credit score verces how much one will have to pay in interest. Them ask him if he likes feeding money down the drain?
myfico. com is a great resource one of my favorites
as stated above, you can get an no income verification loan. This will allow you to get into the house with you as the only person on the loan. Of course, depending on the state, you may need to have your husband sign on the mortgage.
It was good advice to keep all of your credit completely seperate from your husband....
Thanks guys, I really appreciate the advice. :-?
There's a lot that can be done by next year to clean up his credit score. Check www.creditboards.com , www.creditinfocenter.com (their forums), www.creditnet.com , www.artofcredit.com
Tell him to get crackin'!
Call some local banks and see when and if they offer seminars on how to raise your credit score. Have him apply for an unsecured loan and see what happens. Then you apply for the same loan amount and see what happens. Hopefully if both are approved you will see a noticeable interest rate difference. But a better lesson may be learned if his is disapproved and yours is approved.
Actually, when getting a loan for a primary residence with a spouse, the primary borrower is the one who makes the most money. The other borrower can have N/A on all three scores and still be a co-borrower.
So if you make more money than your husband you can use him without his carelessness affecting the loan. However if he makes more money, than the interest rate would be affected.
Hopes this helps
Lori
[addsig]
You should be careful of all the credit cards where you're jointly responsible with him. His reckless spending and not paying back on time may affect your score. Please, take your name off those cards and make sure that only he is responsible for his payments.
As for raising the FICO score, he should be paying all his payments on time and more the better (of course). The balances, # of credit cards and other debts, and late payments effect the FICO score.
If you have a streaming income, try to see if you can pre-qualify for a loan without his information. A good loan officer should be able to paint several scenarios for you.