Posted on: 01st May, 2009 12:32 pm
If my spouse has bad credit, can I get a home with both incomes combined but not add him to the deed.
you cannot use his income if he isn't on the mortgage. if the "bad" credit can be improved enough before you need to make a purchase, you can move forward jointly.
When you and your spouse apply for a mortgage jointly, the income, credit, and debt-to-income of both spouses will be used to determine your interest rate and the amount of loan. If your spouse has bad credit, you may not get qualified for the loan amount and interest rate needed to purchase the type of home you desire.
If your spouse's credit is so bad that it will affect your ability to secure a mortgage, you may have to apply for it alone. This means you will only be able to use your income on the application, which may mean you will qualify for a lesser amount. One option would be to ask a close relative to co-sign on the mortgage for you. This can be helpful, but it may also be tricky since that relative will be equally responsible for the payments being made on time. So any late payments or non-payment will be reported on their credit as well as yours.
If your spouse's credit is so bad that it will affect your ability to secure a mortgage, you may have to apply for it alone. This means you will only be able to use your income on the application, which may mean you will qualify for a lesser amount. One option would be to ask a close relative to co-sign on the mortgage for you. This can be helpful, but it may also be tricky since that relative will be equally responsible for the payments being made on time. So any late payments or non-payment will be reported on their credit as well as yours.
Hi
If you cannot add your spouse due to his bad credit you won't be able to use his income to qualify for a loan. He has to sign on the loan papers as a co-borrower so you can use his income to qualify.
If you cannot add your spouse due to his bad credit you won't be able to use his income to qualify for a loan. He has to sign on the loan papers as a co-borrower so you can use his income to qualify.