excellent credit marries ugly credit

Hi guys,

I am just wondering what is our chance (if any) of getting a good rate (APR) on a SFH owner occupied ($200,000) for me and my wife. Here is our situation, my FICO score is 746 with no nagative issues whatsoever, my wife’s is 590 with several nagative issues like collections/ late payments/bad debts and so on :banghead. Between us we make $105,000/year. We live in TX.

Thanks

Can you qualify for the house you want on just your income? While we were working on my wife’s credit, that’s what we did. We put the loan in my name and held the deed jointly. Now her credit score is in the 780s…

Keith

Unfortuntely I cant qualify for 200k on my own . thanks

Take a look at FHA and see if the loan falls into those guidelines… if so, you’ll get a good rate on a 30 yr fixed.

RTH,

An FHA loan will force the positive borrower to include all of the negative borrowers CURRENT debt (not collections and charge-offs) in the debt to income calculations. However there are programs available that would allow for the positive borrower to qualify using a portion of the negative borrowers income. Hope this helps.

WGO,

I sent you a PM.

I completely missed the part in here about collections… FHA will require them to be paid. Sorry, Fannie mae be able to look past them… you will need to earn more than her in order for you to be considered the primary on the loan.

I can’t believe I didn’t see the part about collections… I just glossed over the initial message and saw scores… sorry again.

Rescue,

Don’t feel too bad you were partially correct. Depending on the age of the collections and the quality of the explanation letter the collections may not have to be paid.