Re: Mortgage strategy for high-income couple with disparate credit histories
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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