Home Selling in Denver>Question Details

kandyo1, Home Buyer in Tonawanda, NY

unmarried couple buying a house, bad credit and good credit, agreement.

Asked by kandyo1, Tonawanda, NY Thu Aug 16, 2012

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Robert McGuire’s answer

I have run into this problem often. One in the couple has good credit and the other bad. Depending on how bad the one credit is, they may not be able to be on the loan. If the one with good credit can qualify for what you want you can go with that and then do a 'Quit Claim' after closing to add the other party on to the deed. This is a good question for a lender who can tell you the specifics of your particular situation. You also need to get legal advice as to what happens if for some reason you don't stay together so you know what happens with this asset. If you need a good lender to review your options or a Realtor to help you through the process, let me know. Best of success.

Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Thu Aug 16, 2012
Not to clear on the question? I can answer with some more details.

Good Luck
Verde Denver Real Estate
1 vote Thank Flag Link Thu Aug 16, 2012
What is your question? You posted under Selling, yet it seems that you're asking about buying. Please clarify.
1 vote Thank Flag Link Thu Aug 16, 2012
Sorry for the confusion, I have good credit he has bad, we are not married but wish to buy a house jointly. We cannot get a mortgage together because of his credit but he wishes to own the home with me. Is there an agreement we can sign stating he is 50% financially responsible and 50% owner of the home even though the mortgage is in my name alone?
Flag Thu Aug 16, 2012
I would talk with a good lender to clarify. Start with your bank, good luck.
0 votes Thank Flag Link Thu Aug 16, 2012
When you say agreement are you saying premartial agreement? You need an attorney for that. Real estate agents and brokers don't practice law.
0 votes Thank Flag Link Thu Aug 16, 2012

If you wanted to purchase the property and own together then buy in the partners name that has good credit. You won't be able to include the bad credit income. Do a quit claim on title so you both own it at closing. I would have an attorney draw up a exit agreement for the both of you for split of ownership if you split up. Please let me know if this helps.
0 votes Thank Flag Link Thu Aug 16, 2012
Yes, very much. Also, I want him to be 50% financially responsible for the property. The problem is his credit is bad and we cannot get a combined mortgage because of it. How do I get him committed legally to be financially responsible for his half? He doesn't object, but I've been burned in the past.
Flag Thu Aug 16, 2012
What is your question specifically? If you're wanting to buy a home, both of you need to qualify (both need to have good credit, income, debt-to-income ratios, etc.). Or, you could look into the possibility of just one of you being able to qualify on their own. BUT...since you're unmarried, I'd be careful. It might be wise to talk to an attorney.
0 votes Thank Flag Link Thu Aug 16, 2012
Your marital status has no affect on credit. It's all about credit scores and qualifying. Ed
0 votes Thank Flag Link Thu Aug 16, 2012
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