Posted on: 15th Feb, 2009 06:49 pm
We have both owned homes in the past. Where I always paid my payment on time, he ended up not being able to afford his home and was foreclosed on. Also, he is a felon, due to white collar fraud and owes restitution. (This all occurred years ago.) We both have decent credit (670-680), but are both self employed. I do not claim much on taxes but since he claims a bit more, it was suggested that we both apply for the loan together using our combined income. I do not want him to be on the loan or deed. I know this sounds awful, but I just want to protect myself in the event of a breakup. We will not be buying a home that either of us couldn't afford if we were by ourselves. Is there any way for me to buy a home utilizing his tax statements (I bought both my previous homes taking advantage of the now non-existant "no doc" way, but not having him on the deed or loan?
Hi brimckee,
I don't think you can buy home in your name only, utilizing his tax statements. However, I think you can buy the home and finance it together and once this is done, have him quitclaim his share of interest to you and get the home refinanced only in your name. But before you go on to buy home together, get it, in writing, from him that he'll quitclaim it as soon as the home is bought and financed.
I don't think you can buy home in your name only, utilizing his tax statements. However, I think you can buy the home and finance it together and once this is done, have him quitclaim his share of interest to you and get the home refinanced only in your name. But before you go on to buy home together, get it, in writing, from him that he'll quitclaim it as soon as the home is bought and financed.
well...jenkin7 has it right in saying that you cannot use your boyfriend's tax information to help you buy a home by yourself.
i disagree, however, with the scenario laid out. buying together with the stipulation that he quit claim to you, etc. is precisely what you're trying to avoid. not only that, but the thought that you could refinance after such a quit claim deed was filed is patently incorrect, inasmuch as you've already told us you don't show sufficient income to make the purchase.
unfortunately, "decent" credit won't get you into a no-doc loan these days. they do still exist, but standards have been raised as regards credit scores.
you may find someone out there who will consider your situation, but you'd best be prepared to pay a premium (higher rate).
i disagree, however, with the scenario laid out. buying together with the stipulation that he quit claim to you, etc. is precisely what you're trying to avoid. not only that, but the thought that you could refinance after such a quit claim deed was filed is patently incorrect, inasmuch as you've already told us you don't show sufficient income to make the purchase.
unfortunately, "decent" credit won't get you into a no-doc loan these days. they do still exist, but standards have been raised as regards credit scores.
you may find someone out there who will consider your situation, but you'd best be prepared to pay a premium (higher rate).
George is right, IF you find a no doc or "stated income" program, your scores will push the rate sky high. Your other option is a hard money lender which may have guidelines that are not as stringent, but your rate will also be a lot higher.
On another note, I agree with your intentions to keep your boy friend off of the mortgage and title. However, I would write up a seperate agreement which essentially indicates that he owes you "rent" while he is living in the home and he has NO equity interest in the property.
On another note, I agree with your intentions to keep your boy friend off of the mortgage and title. However, I would write up a seperate agreement which essentially indicates that he owes you "rent" while he is living in the home and he has NO equity interest in the property.
Thank you all for your advice. I believe what may be my best option is to qualify for the loan together, then have him quit claim the deed to me. I'll have him sign an agreement that states if we b/u, he will move out and if/when I sell the home, I will give him a share of the equity. I don't want to screw him out of any profits, since he will be helping me aquire the home and we'll be sharing any and all expenses. And, since we will only be buying a house which either of us could afford on our own, I won't have to worry about making the payments if he moves out. Is there any way that him being on the loan could disturb my credit? (I'm the one who takes care of all the bills and like I said previously, if we broke up, he'd be the one moving out.) Thanks again
the only impact his credit can have on yours is if you have jointly-held accounts. in this case, if the mortgage is joint, you have control anyway, so that wouldn't happen. if you and he sign any other contracts jointly, and he is handling payment and fails to do so properly, that would definitely have an effect on your credit.