Mortgage question from a bride-to-be

[Anonymous]

I'm new to posting on this board, but I've been reading it for a while so I'm hoping someone will be able to help me out.  I will be getting married this year and my future husband and I have been saving for a down payment on a home.  We have enough now for at least 5% (houses are expensive in NJ), and our goal is to have at least 10% to 20% in the next couple of years.  Currently my credit card debt ratio is at 30% (approx. $8,000) and I'm continuing to bring that down every month.  My FICO scores are good (EX 766, EQ 772, TU 772).  My future husband has no credit card debt.  Currently neither of us have any car loans, installment loans, or school loans.  However, because the only debt my future husband ever had is a car loan that he paid off in 2001, when he tried to get his FICO scores he found out that he doesn't have one.  How will this affect our ability to get a mortgage?

We both earn about the same annual income, so we will have to take both into consideration when we apply.  I know that we're lucky in the sense that we're a couple that is not in the situation that one person has bad credit scores and one good and that financially we're much better off than most of our friends.  But we would really like to purchase a house in the next few years.  Is there anything we should be doing beyond what we are?

I appreciate any input.

[DallasLoanGuy]

get him on one of your credit cards or get him a secured visa.

he will have a great score soon. you have 2yrs.... no worries.

also, it may be a good idea to use the paid for auto as collateral on a personal loan from a credit union. Pay it back over 12 - 24 months. His scores will be great

[Anonymous]

Thanks so much for your help, DallasLoanGuy.  I forgot to mention in my post that my future husband does have a major credit card of his own, but he only uses it maybe once or twice a year and pays it off before the billing cycle ends.  So there really is never a balance.

It would seem that I just need to get him to use it a little more often and not pay it off before the end of the billing cycle and we should be in good shape to get a mortgage when we're ready.

[DallasLoanGuy]

He may be using it enough.... he just needs a couple more accounts.

I would even suggest a store credit card too.

http://www.myfico.com/CreditEducation/ImproveYourScore.aspx

A good credit profile will have an auto loan or other personal loan. 2.3 credit cards, one of which needs to be a 'retail' credit card.

read the link.

do all of this and he will have super scores in 6 - 12 months.

If he is or will be financially **responsible for your cards, you could add him to those accounts and he will instantly have the entire credit history of that account reporting or him.

** I never suggest that people get added to another's credit card account unless they are financially reponsible for that account. If they are not financially reponsible then they are 'piggybacking' on your credit and that is a gray area of mortgage fraud.