10-25-2012 01:48 PM
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?
How bad are your scores? Have you pulled them? Your scores may not be as bad as you think