Posted on: 09th Dec, 2010 02:58 pm
My girlfriend of 6 years and I are looking to buy a home. We have $40,000 for a downpayment and are looking at jobs in the $120-$150,000 range. My credit scores are around 760-770, and I have very little debt, but I have no work history for over a year, and I just got hired last Month. My girlfriend has $35,000 in debt and a credit score around 650, but has been consistantly employed for 4 years. My question is if there would be anyway for either of us to qualify for a loan with an optimum interest rate alone, or if it would be better for us to be married and apply for a loan together. Thanks for any help.
In the good old days couples could keep one of the spouses, who has bad credit, off the loan in order to qualify. Now the underwriters want to see the Big picture. Everyone gets a look at.
I have had couples buy a home prior to marrage because of the previously mentioned reason. Not a bad idea. Once married, there is no going back. www.myfirstboisehome.com
I have had couples buy a home prior to marrage because of the previously mentioned reason. Not a bad idea. Once married, there is no going back. www.myfirstboisehome.com
Where is admin?!
Hope for no silence
Hope for no silence
It does not matter if you are married or not, except perhaps in one of the community property states. In those states, the credit of the spouse is examined even if not on the mortgage.
Girlfriends credit score is fine for FHA mortgage. For a conventional mortgage, could have an adverse affect on the rate or mortgage depending on the size of your downpayment
You and your income should be ok after you are employed for six months.
Your down payment is over 20%. With a 650 score, the rate on a conventional loan would be higher than if score were 720 or higher. Wording that a different way, pay 3.00 points on a conventional mortgage and rate is same as someone with a score of 720 or higher. That would be an expense of $4,500 or less to get best rate. Put $4,500 less as down payment and get the better rate if score is still 650 when you apply.
You are better off with a conventional loan than you would be with an FHA loan if your down payment is 20% or more. (and, it looks like it is)
Girlfriends credit score is fine for FHA mortgage. For a conventional mortgage, could have an adverse affect on the rate or mortgage depending on the size of your downpayment
You and your income should be ok after you are employed for six months.
Your down payment is over 20%. With a 650 score, the rate on a conventional loan would be higher than if score were 720 or higher. Wording that a different way, pay 3.00 points on a conventional mortgage and rate is same as someone with a score of 720 or higher. That would be an expense of $4,500 or less to get best rate. Put $4,500 less as down payment and get the better rate if score is still 650 when you apply.
You are better off with a conventional loan than you would be with an FHA loan if your down payment is 20% or more. (and, it looks like it is)
