The good news is FHA is still allowing credit scores down to 620 and doesn't have an adjustment to the rate like conventional.
I would first find out "how bad" it is and then come up with a plan based the facts.
Chad Bergman, e-PRO, CML
5347 S. Valentia Way #300
Greenwood Village, CO 80111
Office 303-733-5950 x248
Keller Williams Realty
10475 E. Park Meadows Drive, Ste. 550
Littleton, CO 80124
It sounds like your best bet would be to talk with a mortgage broker rather than a lender. Because of the potential credit issues, which could or could not be a hinderance depending on the severity, you'll need the flexability of someone who has numerous products to choose from.
If you need help, just give a call or visit us online at http://www.homestarlends.com
Kathryn Carlson, Licensed Real Estate Broker Owner ,
Bachelor of Science, Realtor, Accredited. Luxury Home Specialist, e-Pro Certified
Memberships: National Association of Realtors,
Colorado Association of Realtors, Denver Board of Realtors, Council of Residential Specialists,
Council of Luxury Home Specialists, Colorado Mortgage Holding Company, Licensed HUD Broker, Denver Metrolist
Homes and Lifestyles of Colorado
Finding Your Place Called Home
Cell (720) 226-8199 - Direct (303) 816-9199 - Fax (303) 845-9938
Special Offers, Daily Home Lists, and
Market Conditions: http://www.DenverHomeLiving.com
9 Divisions to Serve You:
Luxury Home Living - City Living - Mountain Living -Condo & Town Home Living -
Farm & Country Living - Relocation/First Time Home Buyers - REO Bank Owned & Short Sales -
Income & Investment - Land.
* Your Home Sold in 90 Days or $1,000 to You.
* 2.6% Total to Sell Your Home (if you are planning on Buying).
Over 30 Years of Combined Company Experience of Tech/ and Real Estate Sales.
Serving the Entire Denver Metro Region & the Mountains.
Thank Your for Your Referrals of Friends & Family - They are the Life of Our Business.
Did you check your score youself, if you did you might want a mortgage broker or bank run an actual mortgage credit report. I have seen all too often people saying they have a 700 score and it comes in at the 600"s. Sometimes it comes in at 800+. The most accurate is a broker report, they always vary from those reports online that you can pull yourself or monitor your credit.
Also if your working with a good broker, when you pull both your scores they can give you alot of advice on what is effecting his or your score. There are some instances where you are able to fix mistakes or pay down a certain credit card to boost your score. This can happen with a rapid rescore. I tell clients this all the time if you know going in you might be on edge go with someone that will help you accomplish this goal. Get referrals and interview your broker wisely asking them all the pertinent questions. Banks will usually approve or deny you, so be cautious when approaching a bank unless you know you are sure to qualify. A bank will always beat a brokers rate, but if they deny you you will have an inquiry and end up in a brokers office anyways.
You might need to bring in the other partner for source of down payment, debt ratio and income. If you don't need the partner for any of those, you might not have to include the partner on the mortgage, and your higher credit score may provide an advantage of a favorable rate.
My experience is this, it's best to get a reality check on both first.
Counsel with your bank and see what they suggest. It might not be as bad as your partner thinks.