Found the dream house but credit is an issue....other options?

[Anonymous]

backround info. husband and i but only in dh's name has a foreclosure from 2.5 years ago. H will only be on new loan because he is the sole income provider. Just paid off 5k in collection on husbands credit his scores are 581,572,575 we have 10k to put down were wondering if we have ANY other options to get loan approval say for instense a co-signer?? We are looking to get a loan in max 4 months rom now. Just put dh on 2 cc to build his score and applied him for a secured credit card.Going in tomorrow to the bank to try and get a savings loan to biuld his scores. So, is this impossible to get approved in 6 months?

[Heavanly1]

I believe you'll have a couple of issues getting pre-approved for a mortgage.

1. Most lenders require a minimum middle score of 620-640 for a mortgage. When more than one person is applying jointly for the loan, the lenders will use the lowest credit score of the two to determine the terms. Therefore, getting a co-signer with a higher score will make no difference since your husband's scores do not currently qualify him for the loan.

2. Your husband has a recent foreclosure. Most lenders require a waiting period of 3 or more years after a foreclosure before being eligible for another mortgage (excluding extenuating circumstances). In addition, the previous 24 months should show all his other obligations having on-time payments.

3. It's never wise to apply for new credit right before applying for a mortgage. In addition to the inquiries, new credit can ding your score for up to 6 months, until you can establish a solid payment history.

Of the $5000 in collections your husband just paid, did he request a PFD for these accounts? Eliminating these collections from his credit report could give him a score boost.  I'd recommend you browse the Rebuilding Your Credit forums for some ideas on how to increase your husband's scores over the next 4-6 months.

[Anonymous]

Do you have any open credit cards yourself? If you do, you could add him as an authorized user. That will boost his score. I know because I have a few cards that I added my husband on and his score went up. As far as the foreclosure, it is for sure 3 years from date of foreclosure. Good luck!

[Anonymous]

if you need to add a cc to boost score you might want to check with your local credit union because my credit union offers a secure cc and secured loans without a hard inquiry so you dont get the ding for them pulling your credit. Good luck!