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Registered: ‎09-16-2011
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Re: Mortgage strategy for high-income couple with disparate credit histories

elisette wrote:

My husband and I are hoping to buy our first home this year.  We are both in our late twenties and have ~10 year credit histories.   I don't know our exact FICO scores, but I suspect that his is excellent and mine is less so.  The reason is that I took out ~$150k in student loans, which went into repayment 6 mos before I expected them to.  The servicer was sending all the correspondence to my parents' address rather than my current address, so I never paid a dime.  I ended up 90+ delinquent on several massive loans.  Since then, it's been difficult for me to qualify even for the lowest-end credit cards, despite my substantal income.  When I finally did qualify for a card, I would routinely max out my credit limit (because the limit was ridiculously low), which I now know was probably bad for my credit score.  I now try to use my debit card for most purchases.  


For the past four years (since getting out of school), I've earned upwards of $170k per year.  My current income is about $300k, and my husband likewise earns between $250k and $350k.  Our assets, however, are minimal -- maybe $150k in investments, including stuff set aside for retirement.  Almost all my student loans are paid in full -- I have about $30k remaining at a low rate of interest (3.1%).  We did not open any joint accounts after marrying, and our finances are still separate.  


We are hoping to purchase a home valued between $900k and $1.2m, and will probably need a mortgage for between $700k and $1m of that amount.  


I am wondering if there is a way to execute some sort of instrument that would place my incoming paychecks into a trust with my husband as beneficiary -- that way, instead of a couple with a decent joint income but disparate FICOs, he'd be applying for the mortgage as a single borrower with a high FICO and an "individual" income (including his trust income) of around $500k.  


Would a bank/broker permit this?  Is it commonly done?  Do you see any potential obstacles or have any better recommendations?

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