Home Buying in 92782>Question Details

Erin McDermo…, Renter in Buena Park, CA

Using my income on my husband's mortgage applcation?

Asked by Erin McDermott, Buena Park, CA Fri Feb 15, 2013

My husband has the credit to purchase a home FICO score of 675 and makes $60K per year. I have bad credit (in the process of repairing), FICO score of 520 and make $50K per year - we would like to be able to purchase a $250K home. Is there any way to have just my husband apply for a mortgage and include my salary as an additional source of income for my husband?

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Hi Erin, thanks for the reply. Are all of the $900/mo payments in your husbands name? If so, that does make his debt to income ratio on the higher side but still within qualifying range (not a lot of room to spare though). As far as the down payment requirement, if you aren't a Veteran and aren't buying in a rural area, the two lowest down payment options would be FHA financing (3.5% down) and Fannie Mae or Freddie Mac conforming financing (3% down). California has three popular down payment assistance programs for first time homebuyers that can help with those requirements - CHDAP, CHF Platinum Grant, and the CHF ACCESS. One of the better blog articles I've read explaining the differences can be found at Brad Yzerman's website at http://homeloanartist.com/2012/04/compare-chdap-platinum-acc… ... keep in mind the interest rates are usually higher when using the down payment assistance programs though, so if you can come up with the entire down payment yourself or from family (or a combination) then that is usually the better option.

I understand the difficulties of finding a home for $250k or less in South OC - even in Tustin it can be challenging. If you haven't already discussed things with a real estate agent, then Anthony or William would be good to contact to find out what areas would be within your price range for the type of home you are looking for, you may even have to expand your search to Corona as the prices start to get lower as you get into Riverside County (I recommend you don't "settle" on a particular home just because it's in a location you want to live in).

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Fri Feb 15, 2013
I just came back from two really informative seminars given by two lender s here in Southern California. One in particular, is working with home owners on a 95% loan program with NO mortgage insurance. There are some income requirements that have to be met based on the Average Monthly Income for the area you’re considering a purchase.

Feel free to contact me directly and I can get you in contact with the bank in question.

Bill Schallmo
Penmere Partners
0 votes Thank Flag Link Fri Feb 15, 2013
Erin, you may be surprised that $60k/year of income can actually qualify for a $250k sales price, depending on what other monthly payments (car, student loan, credit cards, etc.) he has & the amount of money you want to put as your down payment. And even though you wouldn't be on the mortgage, you could still go on title of the home if you'd like. Have you discussed your situation with a loan officer? I'd be happy to run some numbers for you if you'd like.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Fri Feb 15, 2013
Shane - we havnt run any numbers - we have spent the last 6 months building my husbands score up and are just now getting ready to start looking at the ability to purchase. In the South Orange County area there just isnt too much worth buying if under $250k. Currently we have about $3k to put down and we have about $900 in car payments/credit cards.
Flag Fri Feb 15, 2013
Unfortunately in the traditional lending scenarios the answer is going to be primarily no. But depending on your debt your husband may qualify on his own for an FHA purchase. If you would like to find out, you can call me to get qualified. Just click on my profile image to get my contact info.
0 votes Thank Flag Link Fri Feb 15, 2013
I'm afraid not. If you want to use your income, then your credit score is counted...Hope you clean up your credit soon! There is something called rapid re-score which should help get your scores up a bit more quickly. Be sure to ask your lender about this.
0 votes Thank Flag Link Fri Feb 15, 2013
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