Posted on: 23rd Feb, 2009 09:27 pm
I'm wanting to know the best way to apply for a mortgage and get the best interest rate. My husband and I are going to apply for a fha mortgage because we were told they have the best interest rates right now. I have excellent credit (7.6) and no job (stay at home mom for a year now) and my husband makes the money but has not so good credit (6.3). Can I apply for a mortgage by myself with no job but good credit? Should he apply for the mortgage by himself or if I'm a cosigner will my credit score be considered and help with our interest rate? or should my husband be the cosigner or does he have to be first on the mortgage bc i don't have a job? I sure hope someone can help me......
Hi mistym,
I think both of you should jointly apply for a loan. In that case, the lender may consider your credit score and your husband's income in order to give you a loan. However, you should also note that FHA loans are available at a credit score of 580 provided if you do not have collections or late payments in your credit report. So I don't think you or your husband will face problems while getting a loan.
Thanks.
I think both of you should jointly apply for a loan. In that case, the lender may consider your credit score and your husband's income in order to give you a loan. However, you should also note that FHA loans are available at a credit score of 580 provided if you do not have collections or late payments in your credit report. So I don't think you or your husband will face problems while getting a loan.
Thanks.
Yes ur situation doesnt seem that bad. Credit is good and just depends in dti to see how much of a loan you can get, And yes FHA currently has some of the best rates and as low as 3.5% down payment.
misty, a conventional loan would hurt you due to your husband's credit score. with fha loans, your scores are sufficiently high to obtain the most favorable rates.
lenders use the lower of the two middle scores - if your middle score is 760, and his is 630; then 630 is the score that determines your qualifications. based on that, he could be the sole owner/loan applicant if you wish, as your score wouldn't necessarily have any impact on the rates, and since his is the only income, you'd not be needed from that standpoint.
however, it makes a great deal of sense to me to have a married couple purchase jointly - it's a joint decision, after all, so why not be joint owners. you may or may not desire to be a borrower -that's for you to decide, generally; although i have found that many lenders are going against the grain and requiring joint application when there is joint ownership.
lenders use the lower of the two middle scores - if your middle score is 760, and his is 630; then 630 is the score that determines your qualifications. based on that, he could be the sole owner/loan applicant if you wish, as your score wouldn't necessarily have any impact on the rates, and since his is the only income, you'd not be needed from that standpoint.
however, it makes a great deal of sense to me to have a married couple purchase jointly - it's a joint decision, after all, so why not be joint owners. you may or may not desire to be a borrower -that's for you to decide, generally; although i have found that many lenders are going against the grain and requiring joint application when there is joint ownership.
