jdesjardin3, Home Buyer in Milwaukee County, WI

How to obtain a new mortgage?

Asked by jdesjardin3, Milwaukee County, WI Thu Oct 18, 2012

I have a few questions here. The first is being my boyfriend and I are looking to obtain a new home. I have a substantial credit score, he on the other hand has terrible credit. I want to use his income on the mortgage but not have his name on the mortgage. The second question is that if my credit score has dropped a few points since obtaining my first mortgage, will there being an issue? I have never had a late home payment or car, or anything of that nature.

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3
Mike Collins, 608-921-8536’s answer
Great points Dan. Another thing to consider is most loans require a 640 score these days... I've seen some down in the high 500's for minimums even. There is a chance that your boyfriend might actually qualify for something like that.

Often, mortgage brokers will have the most programs available to them. Below is a link to a broker that works in Milwaukee too.

Regards,
Michael Collins- SFR, BPOR
Broker
Rock Realty Wisconsin
608-921-8536

My Trulia Blog:
http://www.trulia.com/blog/RockRealty/
1 vote Thank Flag Link Thu Oct 18, 2012
jdesjardin,
Banks typically use the middle credit score of the lower borrower. If you intend to rely on his income, he will need to be on the loan. Lenders are extremely cautious these days. The credit score the bank will use will be the one that either they pull, or the one pulled by your mortgage broker. Generally if your score is 740 or above you will get the best rates and terms available. If it dropped below that a bit, it may not matter too much.
In order to qualify for two mortgages at the same time, you will need enough income to handle both and meet the lenders debt ratio guidelines, around 45% of your gross income or less. If you have the other house rented out, 75% of the rental income could be added to your gross income for the calculation.
You probably should meet with a lender in your area right away to go over your boy friend's credit and see if there are steps he can take to improve his scores. Best of luck.
1 vote Thank Flag Link Thu Oct 18, 2012
I have to agree with the points made below. A good mortgage broker is your best course. Most Realtors have one on their resource team, and can direct you.
0 votes Thank Flag Link Mon Nov 5, 2012
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