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Adding my name to husbands mortgage has negative affect on ratios

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
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Adding my name to husbands mortgage has negative affect on ratios

I recently married and we added my name to my husbands mortgage. It’s a VA loan and this was surprisingly easy to do - we just filled out a couple forms, no credit check or application just a signature or two and voila - the mortgage now shows up on my credit report. Thought this would be a good idea for deducting interest on my taxes, and my credit score had gone down after I sold my house and had no mortgage or rental on my credit report, and I was advised that it would be helpful if I had a mortgage on my credit report, so I wanted a mortgage back on there. Here’s the problem: my husband makes a lot more money than I do. Consequently, the house he could afford, and purchased, prior to our marrying,, is waaaayyyy more than I could qualify for alone, or even as half of a couple assuming the other half made about the same income as me. Our arrangement is we have a joint account into which I put about 25% of the payment and he puts 75% and the house payment is made from that account. All fine and good. Until recently, when I decided to consolidate some debt to pay down my credit cards. My scores are fair - mid 600s, but no late payments or collections, just high usage and... you guessed it - high debt to income ratio. I’m guessing it’s the mortgage that is driving up that ratio? Like, they have to assume that I am responsible for the full amount of the payment when figuring my debt to income ratio? How do other people get around this? I cannot believe that I am the only person with a spouse who, thanks to the spouses high earnings, they live in a lovely, expensive home that the lower income earner could only afford a portion of on their own. Help!
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Re: Adding my name to husbands mortgage has negative affect on ratios

That's exactly why lenders are allowed to accept HHI (Household Income) on credit applications, instead of just your personal income.

 

Legally, the lender can (and most do) take your combined income - check the fine print on the application, or talk to the lender.

 

Do you file your taxes jointly, or separately? Jointly would make POI (proof of income) easier...

 

 

EQ8:847 TU8:845 EX8:847
EQ9:850 TU9:850 EX9:850
EQ5:803 TU4:781 EX2:812 - 2019-07-06
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Re: Adding my name to husbands mortgage has negative affect on ratios

iv,
Thank you so much for your quick reply. I had no idea they could be combined - even if he’s not a co-signer in the loan? I will have to go back and read the fine print as you suggested. This was an online loan so perhaps if I were working with a bank with a live person attached, that would have been explained. Yes, we did file jointly last year. I guess it makes sense because there are many expenses associated with running a household, not just the mortgage, and if there is another earner it helps defray that.
Thank you again for your help!
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