Mortgage post-bankruptcy in wife's name, co-signing with my income?

[Anonymous]

My Ch 7 BK was discharged in June, and my credit scores are already pretty decent suprisingly (EQ 665 | TU 618 | EX 675). I know I'm barred from a mortgage for two years from the discharge date (FHA at least). My wife has 800+ credit but not a lot of income (teacher) whereas my documented income is very high. Could I be a co-signer for her loan with my income as support for a more expensive property, even though I have the BK on my credit report?

Everything I research is about how someone with a BK in their file can possibly get a co-signer to qualify, but I can't find anything about the opposite situation. Neither of us have any debt otherwise aside from my $15k in student loans.

Thanks for any advice!

[ashjt2011]

With mortgages there are generally only "borrower" and "co-borrower"

Nobody on the mortgage can have a bankruptcy within the last 2 years, at minimum (this is for FHA). I tried it this way and got told that no-matter what I have to wait till my bankruptcy matures till 2 years, which luckily for me is pretty soon!

[ashjt2011]

I discussed pretty much the same situation with my LO during the initial mortgage application.

There isnt necessarily co-signers on a mortgage. There is just a borrow and co-borrower. You both count equally on the application. The only real thing the co-borrower is good for is their income. Otherwise they look at both persons debt and both of their scores. They use the lower middle score of both people.

Bankruptcy, specifically Ch. 7, will be counted the same way. Both people have to be  out of bankruptcy for 2 years to qualify for FHA. My co-borrower is out of Ch. 7 for almost 5 years and I am just about to hit my 2 year mark in December. But since my 2 year mark isnt till December I have to wait to app until then or run the risk of getting declined.

[Anonymous]

Joe asked-

. "Could I be a co-signer for her loan with my income as support for a more expensive property, even though I have the BK on my credit report?"

I don't think that's gonna fly.

 I'm thinkin y'all's best course of action is patience.

[Anonymous]

Unfortunately not. You'll either have to wait two years or qualify on her income alone.

You can gift her money towards a downpayment from an account in your name only though.

[ezdriver]

The term "co-signer" is the same as co-borrower. You are not eligible for a government loan. However, if you can handle a 20% down payment, you can qualify for a portfolio loan.

[Anonymous]

Thanks - the idea of putting as much down as possible and qualifying on her income alone sounds like the right path.

[Anonymous]

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@ezdriver wrote:

The term "co-signer" is the same as co-borrower. You are not eligible for a government loan. However, if you can handle a 20% down payment, you can qualify for a portfolio loan.

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@ezdriver how bad are the interest rate premiums on portfolio loans?