Question to my Fico family!!
what's the procedure or how does it work if let's say a couple marries and wants to buy a home. One person has great credit, the other a recent BK! Both have never owned a home and would both be first time home buyers. How does that work? Would the couple still have to wait the minimum 2 yrs for fHA, and 4 yrs conventional still because one partner had a bK before they got married?
Any advice or comments welcome
thanks!
As long as you don't live in a community property state, one person can get a mortgage for the home and both can be on the title. I just did this in MD in August.
Starting Score:TransUnion: 698 (12 FEB 2010), Equifax: 674 (12 FEB 2010)
Agreed with PP. If one spouse has good credit, the best option may be to put the mortgage in that spouse's name only and have both spouses on the title. That is what my husband and I are doing, and I am "gifting" him the majority of the downpayment. Otherwise, they look to the middle score of the spouse with lower scores and use it to determine eligibility. That tanked us when I was included. The downside is that my significant income does not count in determining DTI - only my husbands - so I could see this approach may be an issue if the spouse with stellar credit does not work or makes significantly less than the spouse with less-than-pristine credit and therefore when looking at just that spouse, it appears that spouse could not afford the mortgage payments on his or her own. Good luck!
Starting Score: 644 (EQ) 646 (EX) 670 (TU) as of 11/2013
@pizza1 wrote:Question to my Fico family!!
what's the procedure or how does it work if let's say a couple marries and wants to buy a home. One person has great credit, the other a recent BK! Both have never owned a home and would both be first time home buyers. How does that work? Would the couple still have to wait the minimum 2 yrs for fHA, and 4 yrs conventional still because one partner had a bK before they got married? if you need both incomes, you are bound by the bk rules. if you dont need that person's income no problem.
Any advice or comments welcome