My wife and I are trying to buy our first home. We both are recent grads and have good paying jobs in our respective fields. The issue is I have credit from student loans, 3 credit cards, and a recent auto loan, while she has no credit history at all. No credit score, no nontraditional credit (utilities, phone bill, etc...) since she lived with her parents until we got maried. Are there any lenders who will still make loans in this situation? We've tried RMC (Ryland homes in house mortgage company) and Wells Fargo and neither can work with us. Any ideas? Or do we just have to wait for her to be able to pull a score? We have opened a CC account her name as well as added her as an authorized user to one of my CCs.
If she is on the loan application she must also qualify for all requirements.
Since you have a score (assuming a qualifying score) and secured a good job since college, is it possible to apply for the loan alone?
You can apply alone and qualify off of your score and income and if approved you can put her on the Deed to the home. Being on the Deed gives her homeownership with you, just not responsible for the loan unless a community property state.
I cannot secure the loan alone because the house we are looking at would be above my allowable DTI (41%) is what I have heard... We have opened a CC in her name though. How long will it take to generate a score?
6 Months of reporting before it generates a score.
One more question. Since I added her as an AU on my CC will that generate a score once it repots? It is about 2and a half years old.
When first establishing credit, it generally takes 6 months before a FICO score is available.
You could possibly see other types of scores available sooner, but majority of Lenders only use FICO scores.
Thanks for the replies. I may have found a lender that can help us in our situation. I'll keep you all posted!