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Co-Buyer question

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Established Member

Co-Buyer question

I’ve read where I’m SOL for a mortgage due to being discharged from Chapter 7 recently. My wife has never filed and never had any issues with her credit (currently around 750’s). My questions are:

Would we still be barred from a mortgage purchasing together due my CH 7?

She can’t use my income with me being on the loan?

Her income is roughly 47k, mine is 95k. We are looking at homes in the 220k to 280k range. We own a home now in her name only. Origanal loan was 143k and we have roughly 20k equity in it.

Any thoughts would be appreciated. Thanks!

Ch7 Filed 01/2018 Discharged 05/2018
Message 1 of 3
Community Leader
Super Contributor

Re: Co-Buyer question

Her good credit doesn't cancel out your bad credit, so if you are on the mortgage with her you'll still need to meet all of the waiting period requirements.  There are loan programs out there that are OK with a recently discharged Ch 7 BK, but they have increased down payment requirements (i.e. less than 1 year requires 35% down, etc.)


Correct, your income cannot be used if you are not on the loan.


How much (%) would you be putting down on the new home?


How much are you estimating property taxes & homeowner's insurance to be on the new home?


What do you plan on doing with your current home?  How much is the mortgage payment?


What are your wife's other debt payments?

The answers to those questions will help determine if her $47k/year of income would qualify for the new purchase.

Helping people with Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
In Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 2 of 3
Frequent Contributor

Re: Co-Buyer question

If you need to be on the loan with your spouse in order to qualify for the sales price you desire, but can't qualify due to either the FHA, VA, USDA, or Conventional BK7 waiting periods, you can always go NonQM/Portfolio. These loan products are viable alternative for people who don't fit into the box. Rates and fees are a higher, but there are no prepayment penalties so you can refinance out of these as soon as you're able. These loan have 5/1, 7/1, 10/1 ARMs as well as 30 years fixed options. Hope this helps.


Best wishes!

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 3 of 3