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Advice needed for possible Mortgage

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Bay_Area_Joe
Frequent Contributor

Advice needed for possible Mortgage

Hello,

I am a new poster to the Mortgage forum.

 

Background.... 

I have good credit and scores all upper 700's.  About 200k of open lines, a car loan, with 18 months remaining. CC UTL is about 5%.

No badies at all.  Pretty low inq in the last 12 months.

Own my LLC, been in business for almost three years, good income 75k personal and gross business about 135k in 2013.

 

The question becomes with girlfriend.

She has high near 700 scores, but almost 20k in CC debt, nearly maxed out, but making all payments.

She was divorced two years ago, but still has her name on Mortgage with EX, she did a Quit Claim in Jan to him, but still on loan.  That loan is in default now and EX is trying to get loan Mod, but slow process.

 

She does have good income 65k yr., and very solid employment history 19 years.

 

She does not think she has a chance to be on new loan with old loan the way it is now, but her scores aren't bad considering.

 

I am thinking I need her on loan to help with income and stability, but her past credit could be bad..  But I do not know if I can qualify on my own due to new business.

 

I don't want to waste the time with LO if there is just no chance.

 

We can come up with about 15% down and closing cost.  Purchase is about 350k.

 

Any thoughts would be nice.

 

thank you

 

J

 

About 600k in Credit Lines
CSP 29.9k, Citi DP 58.5k, Chase Sams MC 20k, Amex Hilton Surpass 35.6k, Hawaii Air 26k, Discover More 56k, Chase SWA 3.5k, WF PLOC 30k, B of A Visa 63.3k, Wells Plat Visa 8.3k, RC Willey 5k, Pen Fed Visa 50k, Pen Fed PLOC 25k, Lowes 25k, CSR 28.8k
Message 1 of 7
6 REPLIES 6
james442
New Member

Re: Advice needed for possible Mortgage

What state are you in? Tax returns are crucial since you are self employed. Let me know if you have any questions.

Message 2 of 7
Bay_Area_Joe
Frequent Contributor

Re: Advice needed for possible Mortgage

Nevada

About 600k in Credit Lines
CSP 29.9k, Citi DP 58.5k, Chase Sams MC 20k, Amex Hilton Surpass 35.6k, Hawaii Air 26k, Discover More 56k, Chase SWA 3.5k, WF PLOC 30k, B of A Visa 63.3k, Wells Plat Visa 8.3k, RC Willey 5k, Pen Fed Visa 50k, Pen Fed PLOC 25k, Lowes 25k, CSR 28.8k
Message 3 of 7
james442
New Member

Re: Advice needed for possible Mortgage

Ok.. With regards to the past credit issues...it seems her credit is back on track. 

 

Has she had any lates in the last year and how much are her monthly payments on the credit cards?

 

That number might be the deal breaker regarding placing her on the mortgage. and how much is your monthly bills? (cars credit cards loans etc)

 

 

Message 4 of 7
Bay_Area_Joe
Frequent Contributor

Re: Advice needed for possible Mortgage

Thank you for reply.

 

She has no lates, no baddies at all, except for the Mortgage that her EX-Hus is trying to deal with.

 

According to Credit Karma she is at 684.  Two Inq in last 24 months, one to fall off in April.

 

Her debit is an issue, her total CC payments are at about 500 per month, no other loans.  Her AAoA is 6yr 6m.  her oldest account is over 22 years.

 

My car payment is $400 per month, which about 7k left on loan.  My total CC debt is just under 10k, which I could pay off if needed, but I am thinking I may have to pay most of her debt down as well which will help dramitcally with her score, but also want to leave enough cash on hand for Down Payment and Closing Cost.

 

My AAoA is 5yr 6m. Oldest account 23yr.  No baddies at all.

 

Thank you for the input.

 

More input requested, and appriciated.

 

Thank you

 

J

 

 

 

 

About 600k in Credit Lines
CSP 29.9k, Citi DP 58.5k, Chase Sams MC 20k, Amex Hilton Surpass 35.6k, Hawaii Air 26k, Discover More 56k, Chase SWA 3.5k, WF PLOC 30k, B of A Visa 63.3k, Wells Plat Visa 8.3k, RC Willey 5k, Pen Fed Visa 50k, Pen Fed PLOC 25k, Lowes 25k, CSR 28.8k
Message 5 of 7
BrianB_The_Loan_Professor
Valued Contributor

Re: Advice needed for possible Mortgage


@Bay_Area_Joe wrote:

 

The question becomes with girlfriend.

She has high near 700 scores, but almost 20k in CC debt, nearly maxed out, but making all payments.

She was divorced two years ago, but still has her name on Mortgage with EX, she did a Quit Claim in Jan to him, but still on loan.  That loan is in default now and EX is trying to get loan Mod, but slow process.

  

She does not think she has a chance to be on new loan with old loan the way it is now, but her scores aren't bad considering.

 

I am thinking I need her on loan to help with income and stability, but her past credit could be bad..  But I do not know if I can qualify on my own due to new business.

 

I don't want to waste the time with LO if there is just no chance.

 

--------------------------------------------------------------------------------------------------------------------------------

 

 

 


Welcome to the forum - I am afraid getting your girlfriend on the loan will be difficult at best - she is still obligated on the note to the old home and even though her scores are ok that defaulted mortgage is going to be an issue - Quit claiming it does not remove her obligation to the bank. Does she have a court order saying he will get the house and is responsible for making the payment?

If she does you may have a chance at using her but it is still a long shot - in the eyes of an underwriter they will see she was on title until last month and that the loan is in default 

 

As far as going it alone your income is soid at 75k a year - Your scores are high enough and you have enough for a down payment to go conventional.

at 6250 a month Gross personal income (assuming that is what can be used once taxes are reviewed)

would allow you to have a combined mortgage and other debts (minimum monthly payments for credit cars alimony child support etc - not utilities or insurance type items) of somewhere in the $2700 a month range....the mortgage will take up quite a bit of this total but it is still a strong possibility that you can buy on your own.......

It can go higher than the 43% I used. So you might be able to stretch it some. I tried to use a conservative number.............you need to apply to see if it can be done...once your credit has been pulled and automated underwriting has been used on your scenario you should have a fairly solid idea of where you stand

 

 

Good Luck

Brian

 

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 6 of 7
ShanetheMortgageMan
Super Contributor

Re: Advice needed for possible Mortgage

I agree with Brian, the previous mortgage going into default with her name on it will seriously hinder her ability to get a new loan.  Even if it's spelled out in the divorce decree that it was his responsibility the creditor can still go after her (unless the creditor also agreed to release her from liability).

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 7 of 7
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