Joint loan application or single with multiple credit factors but good income.

Asked by Amie Hansen Bresnahan, Hillside, IL Fri Mar 22, 2013

Need advice on a mortgage for my husband and I. I have a Fico score of 560 with an annual income of 69K at a job of 16 years, one recent (2010) short sale plus multiple old negative marks on my report. My husband has a 590 score that has been rising steadily over the last few months due to auto-payments we put into place for some of his recent items. He does not have a lot of negatives. He has been at his job 6 months and earns mostly tips, but that does provide a steady good income. Where can we find a broker to help us figure out how to find a lender and/or help repair credit? And should we apply jointly or have my husband apply on his own? Only looking for up to 150K with 5% down.

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Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue May 14, 2013
Good afternoon Amiehansen,

Wow, you are covering a lot of ground with presenting your scenario in such detail!

Couple of things:

Meet with a Local Mortgage Banker to get prequalified. The Mortgage Banker can best guide you through the entire prequalification scenario you present, including advice on how to improve your credit to a satisfactory level to qualify (Mortgage Bankers don't "repair" credit).

Use the "Find A Pro" tab at the top of this page to locate an experienced and reputable Mortgage Banker in your area.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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0 votes
Helen Mandel, , Chicago, IL
Fri Mar 29, 2013
You would not be able to receive a mortgage after a short sale for three years.
Lenders would consider your husbands income as long as he had tip income and declares this income.
0 votes
Riccardo War…, Agent, Bolingbrook, IL
Mon Mar 25, 2013
HI Amie,

You do need to work on that credit some. We have a lender that goes down to 600 middle fico score. I work with a very reputable company to help you with your credit if you would like the referral. Feel free to click on the profile and contact us.

Sean Cochran
630-470-6830 office
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Mon Mar 25, 2013
Hello Amie
A lender will look at the lower middle credit score for any borrower that is on the loan- Most lenders will require a minimum credit score of 640. I would recommend working with a lender to improve your credit - this will help you qualify for a more affordable mortgage and increase your options.
Good luck and should you have any questions please feel free to contact me
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Randy Schule…, Agent, Saint Charles, IL
Sun Mar 24, 2013

To find a good mortgage lender click here for 4 lenders that I have found to be very capable and extremely competent. Each has their own style and programs. With a 5% down payment they may suggest FHA financing since they are most lenient, with a lower down payment, with credit scores.
0 votes
Ivan Sagel, Agent, Chicago, IL
Sun Mar 24, 2013

I have some good lenders that I work with. I would recommend applying jointly, but you need to get both your numbers to 650+. You might have to wait one more year to buy.

Best regards,

Ivan Sagel
0 votes
Joe Schiller, Agent, Chicago, IL
Sat Mar 23, 2013
any lender will help you ..ask your agent
0 votes
Edith Karoli…, Agent, Winnetka, IL
Sat Mar 23, 2013
You need to start with a good loan officer, who will double check on your financial side, including income, current debts and credit scores..... Usually the best step is to discuss that with a good lender.

Then if currently it does not look like you will be able to get a loan, with the various programs out there,
You should take a deep breath, relax and sit down and put together a good plan...
Which should include two items
a) improve your credit scores
b) not add additional responsibilities, i.e. do not buy a new car now or before you buy your home
c) save save save and save some more, the better your down payment, and extra money in the
bank for potential repairs down the road the better for you

I am sure a loan officer here will respond, if not any one of the Realtors on this site could recommend
a lender for you in the city of Chicago. Just let us know.
Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

Covering for @Properties Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more or
Check out my website at
Get to know me! Learn about my experience, expertise, services! Read letters
of recommendation! Sign up to search for properties in my expanded service area.
0 votes
Philip Sencer, Agent, Chicago, IL
Sat Mar 23, 2013
You need tpo speak with a few lenders, but no way can you get a mortgage. You need to fix your problems.
0 votes
David Hanna, Agent, Chicago, IL
Fri Mar 22, 2013
My suggestion is to work on fixing both credit scores. You might be able to find an FHA loan, but you are going to be better off with higher FICO scores and renting another year. Rates will still be good, yours will be better and there will be plenty of good deals waiting.
0 votes
Matt Laricy, Agent, Chicago, IL
Fri Mar 22, 2013
There are plenty of them out there. Try calling Tony Lupescu at 708-351-6416.
0 votes
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