cancel
Showing results for 
Search instead for 
Did you mean: 

Adding spouce to mortgage loan?

Established Member

Adding spouce to mortgage loan?

Hello,

 

Im sure this info is somewhere on here, but im gonna ask anyways. I was told by a friend that when my husband and I apply for a loan, they could use just my score and both of our incomes. So for the last year, I have been working very hard on my credit, and just making sure that my husband pays his bills on time. I was just reading some sites, and they say that lenders actually take the lowest score out of the two applicants, so alot of people are forced to apply with just one applicant. Is this true? Hopefully that makes sense... Thank you.


Starting Score: 560
Current Score: 635
Goal Score: 700


Take the myFICO Fitness Challenge
Message 1 of 7
6 REPLIES
Valued Contributor

Re: Adding spouce to mortgage loan?


ashimaly wrote:

Hello,

 

Im sure this info is somewhere on here, but im gonna ask anyways. I was told by a friend that when my husband and I apply for a loan, they could use just my score and both of our incomes. So for the last year, I have been working very hard on my credit, and just making sure that my husband pays his bills on time. I was just reading some sites, and they say that lenders actually take the lowest score out of the two applicants, so alot of people are forced to apply with just one applicant. Is this true? Hopefully that makes sense... Thank you.


Lender's will use the lowest score. You can apply on your own if your spouse's income isn't needed to qualify for the loan. If both incomes are used, they'll use the lowest score of the borrowers.  You can't use his income, but not have them consider his credit.

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


Take the myFICO Fitness Challenge
Message 2 of 7
Established Member

Re: Adding spouce to mortgage loan?

Thanks for the reply. Yes, that does make sense. Okay... well I guess its time to start working on his credit. So here is the deal.... he has about 4000 in collections from 2008. We were told to let these fall off. (And not pay them, I know, it sounds bad.) So, at this point, I am guessing I need to contact all of his collectors, and start making payment plans to get his credit up? (Although I was told paying them off will not raise the score)....


Starting Score: 560
Current Score: 635
Goal Score: 700


Take the myFICO Fitness Challenge
Message 3 of 7
Established Member

Re: Adding spouce to mortgage loan?

Also, my income is about 65k and his is 50k.... So would it be worth it to add him?


Starting Score: 560
Current Score: 635
Goal Score: 700


Take the myFICO Fitness Challenge
Message 4 of 7
Moderator

Re: Adding spouce to mortgage loan?


ashimaly wrote:

Also, my income is about 65k and his is 50k.... So would it be worth it to add him?


Depends upon how much you need to qualify. Where are you? Are you in a high cost real estate tax or high cost insurance area?

 

You may not need to pay off the $4000 in debt. It is very old.

Break it down here so we can see what it is.

 

If you do decide to pay - make sure you do a 'pay for delete' if you can. It will help him tremendously.

 

 

Message 5 of 7
Regular Contributor

Re: Adding spouce to mortgage loan?

a few things to think about with your husbands debt.

1. type of debt (i.e. federal debt?, student loans, or credit card (private personal debt) ), if federal debt it most likely will need to be paid.

2. Your states SOL, some are 3 years, some states are 15 years (if you in a state that is 15 years it may drop off your reports, but they can still sue) again if this applies to you.  I would pay them therefore to not be suitable to be sued by the old debt.

3. If you have a short or expired SOL i would let them drop off (and if your like me i paid them (settled them) after they dropped off so that they would not jump back on my reports.)

4.  Lenders look at the middle score of the lowest applicant (in your case sounds like your husbands), however he makes a large sum of money that could help with the DITI (debt to income) therefore may be helpful or could hurt if his debt is too high.

 

my suggestion is look at your States SOL and think about the husbands debt after that, then use some of the mortgage calculators found online to see if you need his income to get the house (or at least look at price ranges) you want.  remember to read the rules to what count as income and monthly debt.

Message 6 of 7
Highlighted
Valued Contributor

Re: Adding spouce to mortgage loan?

As to getting the best possible rate, if your score is the highest of the 2 (even when factoring in YOUR lowest score), then get the loan in your name only.

 

What matters is WHO is on the deed/title. This is where you want both of your names listed. This does not impact the loan, you just have to request it.

 

Scores: about 700 across the board
Total CL: $275k
Message 7 of 7