UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: jennyv8 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127683  
Subject: Getting a mortgages: one of us has bad credit Date: 10/30/2005 4:28 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My partner and I want to buy a single-family home. Neither of us has owned a home before.

- I have a solid income, no debt, and an excellent credit score.

- He has a very low reported income and lots of debt (scary debt/income ratio).

For the sake of simplicity, assume that it doesn't matter to us who is on the mortgage; it doesn't matter to us who "owns" the house; we will both be living in the home for the next 30 years; and we will divide all monthly expenses in some equitable manner.

Due to our contrasting financial situations, my feeling is that it would be better for me to apply for a mortgage on my own than it would be for us to apply together. I don't see how adding him to the picture helps us financially, as we would just be adding a lot of debt and little income.

However, we will both be living in the house and sharing expenses. So what I, by myself, can afford on paper is lower than what we, together, can actually afford in practice. For example, it would be a stretch for me to afford our current rent on my own, but it's no problem between the two of us. He can pay a certain amount each month, even if it doesn't look like it on paper.

What are some of our options?

- When applying for a mortgage, is there an "official" way to account for the fact that after you buy a home you will have someone who is not on the mortgage paying part of your mortgage?

- Is it worth our while to look into "no documentation" loans?

Thanks in advance for any advice.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement