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Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

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travelguru
New Contributor

Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

Hello,

I am hoping someone here can answer my question. Right now my FICO score is 608. My wife's is 720. We have no debt and a very low balance on our credit cards. We are looking into buying our first home very soon, and I wanted to know how would this work with our credit situation. Any help anyone can provide would be greatly appreciated. Thank you.

Message 1 of 12
11 REPLIES 11
Anonymous
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Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?


@travelguru wrote:

Hello,

I am hoping someone here can answer my question. Right now my FICO score is 608. My wife's is 720. We have no debt and a very low balance on our credit cards. We are looking into buying our first home very soon, and I wanted to know how would this work with our credit situation. Any help anyone can provide would be greatly appreciated. Thank you.


Surprised a pro hasn't jumped on this one yet! Basically read the forums it's all here. But here's the simple answer. If you need to include your income to qualify for the house then the mid FICO score for you and DW will matter. If you don't need your income it won't matter, unless you are in a community property state then your debt will count against your DTI. Get that right pros?

 

But, you say you have no debt and then say a very low balance on your credit cards. That is debt! If you are effectively managing your cards to show proper utilization then I understand otherwise you have debt.

Message 2 of 12
Anonymous
Not applicable

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

Most loan programs require a minimum of a 620 middle credit score to qualify. The previous poster was correct, if you are going on the loan, your mid score would need to be at least a 620. It may be that the best rate and terms could be had if you wife could qualify on her own. Does she work? What kind of income does she have? Will you be purchasing in a community property state?

Message 3 of 12
travelguru
New Contributor

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

Thank you to both of you who provided more information. We are going to be moving to California very soon. I know it is a community property state. Her income is well over $100,000 and mine should be in the $65,000 range. What is the best way to get a low interest mortgage?

Message 4 of 12
ShanetheMortgageMan
Super Contributor

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

If you can qualify just on your wife's income alone you shouldn't have to work on your credit, and then you could have the best rates with conventional financing as options - the difference between a 620 & 720 score can be about .75% in rate.  Otherwise with both of you on the mortgage, once your scores get to 620-640 you should have FHA lenders as options, and rates between a 620 and 720 vary by only .125% at most.  How much of a sales price and how much did you want to put down?  Whereabouts out here are you moving?

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
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Message 5 of 12
travelguru
New Contributor

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

We are looking at houses in the upper 500's to mid 600's. We are looking in the Bay Area. As of now, we have $60,000 for a down payment.

Message 6 of 12
Anonymous
Not applicable

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

With an income of that size, is there a reason you can't do anything to raise your scores in that short time?

 

If you have baddies, send PFD's. If you just have no credit, open a large secured card. Either one (or both, depending on your current AAoA) should land you enough points to get up above 620.

Message 7 of 12
Anonymous
Not applicable

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

I still think it would be best in rate and term to try to qualify with your wife only on the loan. Does she have any job expenses or any other deductions she claims from her income?

Message 8 of 12
travelguru
New Contributor

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

Well I have had baddies in my past (maybe 3-4 years ago) but everything has been paid now. We have no debt besides the very low balance on a credit card we have (I am an authorized user on it). If I have already paid these old bad accounts, will the companies accept a PFD letter now? We paid everything off about 6 months ago.

Message 9 of 12
travelguru
New Contributor

Re: Will my wife and I qualify for a mortgage if I have very poor credit and she has perfect credit?

I am not objecting to at least trying...I prefer it that way. No other deductions on her income. Her salary is all in our pocket. We have been finding that a house for $600,000 in the Bay Area is not big at all compared to other cities we have lived in. A house for that price is your basic 3 bedroom, 2 bath house with 1300 sq feet.

Message 10 of 12
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