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Home Purchases
Home Purchase
Advice
-Home Purchase Guide
-Ensuring
a Fast Purchase
-Pre-Application
Preparation
-Buy, Don't Rent!
-Spouse Have Bad Credit?
-Effects
of Credit Card Debit
-Student Home Loans
-Mortgage
Mistakes
-Fair Market Value
-Buyer's Market or Seller's?
-Pre-Offer
Question
to Ask
-Making an Offer
-Putting
No Money Down
-Home Inspections
-Home Warranties
-Escrow
Accounts
Home
Construction Info
Buying a Vacation Home
Refinancing
Home Equity Loans
Mortgages
Auto Loans
Personal Loans
Debt Consolidation
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
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SPOUSE HAS BAD CREDIT?
Below is a the answer to a recent
question that we receive regarding home mortgage loans
for first time buyers. If you have any additional
questions, please
contact us.
Dear
StarLoanServices.com,
My wife and I have been married for about four years. We
are looking to buy our first home. As a result of
mistakes my wife made while in college, her
credit report is very bad. When
applying for a home purchase loan, does her credit
score need to be considered? Or can her name still be on
the mortgage if only my credit score is considered?
Basically, I want her to be able to have interest in the
property. I don't only my name to be on the deed. But, I
want to do what is needed in order to achieve approval
for the loan.
Regards,
Donald Goldman
**We recommend you read
how credit scores effects mortgages.
Dear Donald,
The only reason you would need her
credit score to be considered in the mortgage
origination process is if you need her income to be
counted towards loan qualification. If her income is not
needed for you to achieve approval, then you can simply
put her name on the deed. This will accomplish your goal
of your wife having interest in the property.
However, in certain states, any
mortgage loan that is
taken on within a marriage is considered a joint
obligation. These nine community property states
include: Arizona, California, Idaho, Louisiana, Nevada,
New Mexico, Texas, Washington and Wisconsin.
Community property states include any type of real
estate, physical assets and all earnings generated by
both spouses while married. Any type of asset that is
acquired as a result of a gift or inheritance, or any
asset that was owned prior to the marriage are not
considered community properties.
It is important to note that adding a wife with good
credit on your mortgage application first can help. If
this is not possible, and you are concerned whether your
credit is even good enough to achieve approval, you may
want to consider finding someone to co-sign your loan
for you. Obviously a co-signer is going to have to be
someone with good credit and a solid income. Finding a
co-signed is not going to be easy, especially for a
mortgage. A good idea would be to offer any potential
co-signer the opportunity to have their name added onto
the deed as protection. You can learn more about
loan co-signing.
Another option first time home buyers with not so good
credit have is applying for a no-income verification
mortgage. The interest rates associated with these types
of loans will be slightly higher than typical mortgages.
Also, higher down payments may be required as well.
However, no-income verification loan allows you to
eliminate your income limitations.
We suggest that you also check out the
preparing for a mortgage section before applying for
a loan.
Star Loan Services offers a variety of home purchase
products for
first time buyers. You can fill out a free, no
obligation request today! Let us help make your dreams
of owning a home a reality!
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