Greetings! The way lenders are these days it may be very, very difficult if not impossible. In the past one needed to have 2 years of self employment tax returns to even apply for a loan. A partner who has a salary job will help make loan ratios more palatable to a lender. Lenders are wanting to know how is the loan going to be repaid. Also, on the self employment tax return the lender is looking at the net income = gross less expenses. Most of the time self employed people want to have the bottom line as low as possible to pay as little tax as possible. Best advice is to speak to a loan broker. But be carefull as sometimes they just want to make a loan no matter what the interest rates. Good luck,.... more
It seems reasonable enough: If your credit is bad but hers is good, why not just apply for a mortgage using only her good credit score? The trouble is, if you submit only one partnerĂ˘â‚¬â„˘s information on the mortgage application, the mortgage underwriters will only consider that partnerĂ˘â‚¬â„˘s income and assets in determining whether to approve the loan. Usually, couples count on their combined income and assets to afford a home.
If the partner with good credit cannot afford the loan on his or her own, youĂ˘â‚¬â„˘ll need to apply using both of your scores. That means a more difficult road to approval and much less favorable loan terms.
But, different lenders have different programs....check with your local lenders. Also keep in mind that the deed will only reflect the name of the borrower until at such point in time the other name can be added.... more