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My wife and I are looking to buy a house. She has a great credit history. I do not.

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Valued Member

My wife and I are looking to buy a house. She has a great credit history. I do not.

I have taken great strides over the last few months but I think I am still a year of rebuilding away from realistic mortgage talk.

However , we are looking to buy a house this summer. We are meeting with a loam officer this weekend but I figured I would reach out here first.

My wife has a score over 770, nothing bad , solid history for over 13 years. She owns a condo she rents out and makes a profit of about 600 bucks a month from. Her salary is 65k, been at her job for 8 years.

I have a ton of bad stuff on my report and a middle fico score of 601.

We are looking at houses in the 325 to 350k range and we have 20% to put down.

I am hoping her income would be enough to qualify for that loan amount on her own. If we needed my income ( 74k) we would be in trouble due to my credit history.

I appreciate any advice or tips.

Also taxes would range between 7 and 10k a year.
Message 1 of 6
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Regular Contributor

Re: My wife and I are looking to buy a house. She has a great credit history. I do not.

Any other debts? Car payments, child support, credit cards, student loans, etc.

 

At $350k, 30 years, 4.375% (probably can do better), with 20% down, and using 2% annual property tax and insurance rate, your total monthly payment is $2330.83. At $65k, your DTI is 43%.  If she has no other debt, with her score, probably a go.

 

Otherwise, can you look into restructuring any of her existing debts, to become yours? Definitely think best course if to only document her, at this point in the game. You can add yourself to title at closing.

Sep 2020: EQ 713, EX 711, TU 709 (Mar 2017: 550's)
Message 2 of 6
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Valued Member

Re: My wife and I are looking to buy a house. She has a great credit history. I do not.

She has zero debt.

Will the income from her rental go towards her overall salary number?

Or at the very least , would her mortgage payment not count towards her DTI?
Message 3 of 6
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Valued Contributor

Re: My wife and I are looking to buy a house. She has a great credit history. I do not.

The lender will require her last 2 tax returns to average how much she is actually netting AFTER taxes, Insurance, Mtg Pmt and repairs and other expenses being written off. How long has she used this Condo as a rental and has it been consistently rented with little write offs other than PITI???
Message 4 of 6
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Valued Member

Re: My wife and I are looking to buy a house. She has a great credit history. I do not.

She has rented it out for 2 years non stop.

We just did the math and she is averaging 700 a month in profit.

We live in an extremely competitive renting market. If she puts her apt for rent at 1 , she has 5 applicants by 115.
Message 5 of 6
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Valued Contributor

Re: My wife and I are looking to buy a house. She has a great credit history. I do not.

They will verify her rental thru a 24 month average after expenses as reflected in your Federal Tax returns (2017 & 2018). If she qualifies on her own without your Low Fico Scores then talk to the Loan Officer. Do you live in a Community Property State?
Message 6 of 6
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