If you don't need his income, then just get the note under your name and the deed under both.
I know sharing your financial picture with a stranger is scary, and there is always the fear of being turned down. You have to overcome that fear. My own loan officer shared with me that it is always the most honest, credit worthy people who sit across the desk from her with the most fearful expressions. It may help to know whatever you tell the mortgage officer is supposed to be confidential. Mortgage brokers want you to qualify. They don't get paid until you buy your home. The worst thing that can happen is you will be declined. While that may hurt your pride a bit, nothing ventured, no house gained. If the worst does happen, a good mortgage broker will be able to point our exactly what you can do to begin mending your credit. .
By the way, I have know of cases where FHA allows exceptions under some circumstances. For example if your credit score is low because of medical debt for a non-reoccurring incident, you may be able to get the loan anyway.
You should be asking yourselves questions like how much monthly payment do we feel comfortable with? People across the US are losing homes because they qualified for more house than they could possibly pay for. I advocate my clients maintain control of their financial future. My first question is never about how much do you qualify for or even, what price range are you looking in. I ask, "How much do you want to spend or what monthly payment do you feel most comfortable with?"
Joyce Murphy Realtor
P.S. YES THERE IS STILL HOPE!!!
Since you're first time buyers, you've been renting. Your shared assets are likely minimal. Keep in mind that if you split up, which isn't that uncommon with big personality differences, half of that dream home will likely be his. That's a bitter pill to swallow when you're the one who slaved to make sure that the payments went in on time and that the money *stayed* in the checking account to cover it.
Like much of the advice already given, first take the time to speak to a LO experienced in comprehensive credit repair to see if there is something you can do now to increase your husband score in a relatively short period of time. There are a number of ways to do this and, again, an experienced LO will know them.
Taking the time to do so could save you thousands in closing costs and 10s of thousands over the life and term of a mortgage.
If you spent the time to wait and find your dream home, doesn't it make sense to show the same patient due diligence in structuring the best way to pay for and stay in it. Be wise and good luck.
a) If the utilities are in your husbands name, and you have paid on time for at least the last six months, call them and ask that they report your good credit history during that time.
b) If you have a car loan (from one of those buy here/pay here places) and you have been paying on time, ask them for a letter outlining your agreement and payment history.
c) Ditto for anything else that may be in his name.
There are too many nuances about credit for me to go into it all in this forum. And, it is difficult to offer solid advice without knowing all the details. That being said, there are many things that will affect getting your dream home. Would you and your husband be interested in a free consultation? We can all sit down, discuss the matter, review the facts, and plan a strategy for you to get into a home of your own.
El Brant, SFR, Broker/REALTORÂ®
Wilkinson & Associates Real Estate
Usually a credit score of 620 the minimum to qualify for an FHA mortgage product. A credit score of 749 is where mortgage products get competitive and the interest rates are low and exciting. Your credit score is a good score, however if you can get the points up to 749 on both your credit scores, you will qualify for a much better mortgage product. The higher the credit score the lower the interest rate.
The Credit Repair Expert
Here's my thinking - a mortgage is a thirty year commitment. People with low credit scores have excellent reasons for those low scores, and they often involve a combination of not always paying on time and carrying large balances.
Bruised credit is analogous to a physical injury - say, you're a soccer player with a torn hammy. The fact of the matter is, you're going to have to sit on the sidelines until that baby heals and the leg re-strengthens, there's no rushing the process, and you have to follow all of the steps.
The problem with Mr 598 is that we need to get him on a history of paying down those balances on making payments on time. The shotgun marriage of his credit score to a 30-year mortgage does not bode well; for both of your sakes, he is going to have to demonstrate the ability to stop buying season tickets for whatever and picking up bar tabs or whatever he's done to earn that 598 rating.
598s are often the result of impulsive, can't-miss-out-on-this-opportunity-sort of purchases. Don't let your 732 act like a 598.
know pretty quickly if he can help. He's really honest and trustworthy. Character traits I like a lot. There have been some changes with FHA so you definitely need to talk to someone soon who can shoot you straight. Call David Flory at 910-313-0045. If you want a cell number, shoot me an email. Do you have a Realtor?