No. of Recommendations: 0
As some may remember, I have knocked my CC debt from about $7K to about $3K in 8 months and still plugging away.....

Now my next move will be to attempt to buy a house, but my past bad credit has me worried about my chances of a mortgage in the future.. On my credit report there is a settlement with a CC company from about 2 years ago ($1500, I paid $1000), several 90 days past dues on CC's and two items in collections at the moment, a medical bill thats been paid down from $1100 to $400 and my student loan that I am in the middle of a rehab program.. Besides the two collection accounts, I have paid nothing late in almost two years...

Now here is the real question... My girlfriend/soon to be fiance wants to buy a house ,but her $40K income puts her a little short on the $125K mortgage she would need for the house she really likes... She has perfect credit as well... If we decided to do this together, would I be a help or a hinderance(sp) to her??? Because with my $40K income we would qualify for that mortgage... And in what time frame would my credit be good enough to be a help?
Print the post Back To Top
No. of Recommendations: 1
Now here is the real question... My girlfriend/soon to be fiance wants to buy a house ,but her $40K income puts her a little short on the $125K mortgage she would need for the house she really likes... She has perfect credit as well... If we decided to do this together, would I be a help or a hinderance(sp) to her??? Because with my $40K income we would qualify for that mortgage... And in what time frame would my credit be good enough to be a help?

What you need is a good mortgage broker, because there are options for you. For example, you could do it only on her credit and in her name, and on the basis of "stated income" so that she could use your income to qualify. Alternatively, if she makes more than you. she might qualify as the primamry wage earner and her creit scortes would be more important than yours. Or, your might not be as bad as you think. Get yourself over to the Buying a Home board at http://boards.fool.com/Messages.asp?bid=100144 and post your message there, and if you'd like the name of a good broker send me an e-mail.

Print the post Back To Top
No. of Recommendations: 3
Now here is the real question... My girlfriend/soon to be fiance wants to buy a house ,but her $40K income puts her a little short on the $125K mortgage she would need for the house she really likes... She has perfect credit as well... If we decided to do this together, would I be a help or a hinderance(sp) to her??? Because with my $40K income we would qualify for that mortgage... And in what time frame would my credit be good enough to be a help?

Hi Roush!

The best advice I can think to give you on this one is to be VERY careful here. You're not married, and from what you say, you're not yet even engaged.

Be very sure that you want to go into this at this point. Have you thought, perhaps, of the two of you just waiting and saving for a time when after the wedding you can buy your new 'nest' together?

Just a thought.

Tony
...but I still am...

Off2Aruba
Print the post Back To Top
No. of Recommendations: 0
If you are dealing with a bank and know who the loan officer is then ask them. They should tell you if you help or not. I would assume that you would help some but with your credit it could end up be the same either way. Good luck to ya.
Print the post Back To Top
No. of Recommendations: 0
Ah Tony the voice of reason. I have seen so many people get into trouble and really have to dig themselves out. Better to be married...

Never thought I would say that ONE.

Catleen
Print the post Back To Top
No. of Recommendations: 0
Ah Tony the voice of reason. I have seen so many people get into trouble and really have to dig themselves out. Better to be married...

Never thought I would say that ONE.


Catleen, LOL!

I think it just comes from reading posts like: Help! My fiance and I went in together on a house, but the marriage has now been called off, and....

You know what I mean. ;-)

Tony
...but I still am...

Off2Aruba
Print the post Back To Top
No. of Recommendations: 0
... but her $40K income puts her a little short on the $125K mortgage ...

Five years ago I qualified for a $131,000 mortgage, with a $26,000 second taken back by the owner. I was making only $40K and my wife doesn't work. Unless she has a lot of debt this shouldn't be a problem.

Here is how mortgages are figured:

1. Front end ratio - should be less than 28% of Monthly Gross pay
2. Back-end ratio - should be less than 35% of monthly gross plus debt.

Her monthly gross should be about $3,333 which qualifies her easily for the front end on a $125K mortgage, with a monthly payment of about $850. If she has more than about $400 in credit cards and car payments, she could be sunk.

You may want to check on BofA or E-loan's websites for a mortgage calculator.

Bret
Print the post Back To Top
No. of Recommendations: 0
Yes I have known four people that weren't engaged and they decided they just had to have a house. Which they bought together. They broke up and then they had to deal with an acrimonious break up and them both owning the house, joint bank accounts (you would never catch me doing that) and tons of bad feelings. Each person wanted the house but couldn't manage it. What a lousy situation and it could have been avoided.

Catleen
Print the post Back To Top
No. of Recommendations: 0
Well I am sure the ladies will think this is BAD and want to scold me... But we are getting married next March during her spring break at Disney World....I have a ring, which she picked out and I just haven't given it to her yet.. We decided since this is so planned out and unromantic, that the least I could do is suprise her somehow.... So once school gets out, we are going to go somewhere for a romantic weekend... Sounds goofy, I know....

But back to the financial part, she has taken a job with a different school district near me, which is about 60 miles from her current job, so she needs to move to avoid the travel...Instead of renting an apartment, we feel the best thing to do is for her to buy a house... And thats where my questions about me helping her or hurting her with my poor credit by doing this mortgage together...

I have asked this question over at the Home Buyer board before, but recieved little response... I guess they all have good credit.. :)
Print the post Back To Top
No. of Recommendations: 0
Instead of renting an apartment, we feel the best thing to do is for her to buy a house

Not to be negative, but why? Rent an apartment for a year, or six months, then month to month. If it works out, and you get married, great, buy a house together. If not, then niether one of you is up a creek.

Ishtar
(graduate of the "been there, done that" school of relationships.)
Print the post Back To Top
No. of Recommendations: 0
Now here is the real question... My girlfriend/soon to be fiance wants to buy a house ,but her $40K income puts her a little short on the $125K
mortgage she would need for the house she really likes... She has perfect credit as well... If we decided to do this together, would I be a help or a
hinderance(sp) to her??? Because with my $40K income we would qualify for that mortgage... And in what time frame would my credit be good
enough to be a help?


What Tony says.

This set off all kinds of warning bells in my mind.

I don't know what housing costs are like in your area, but perhaps a $125k home is a little ambitious for someone at her age and in her financial position. You said, "...for the house she really likes." Perhaps she should be looking for the house that serves as adequate housing and is affordable. I pass on things I'd "really like" all the time because I don't need and can't afford them.


Print the post Back To Top
No. of Recommendations: 0
Are you positive she won't qualify with $40K? I know the calculators out there say to estimate 2.5 times your salary....but I make just shy of htat and just closed on a house that sold for $125,000. This wasn't even pushing my ratios to the limit....if she hasn't tried all ready she should go for pre-approval (not prequalification) and see what happens.
Print the post Back To Top
No. of Recommendations: 0
Well I am sure the ladies will think this is BAD and want to scold me... But we are getting married next March during her spring break at Disney World....I have a ring, which she picked out and I just haven't given it to her yet.. We decided since this is so planned out and unromantic, that the least I could do is suprise her somehow.... So once school gets out, we are going to go somewhere for a romantic weekend... Sounds goofy, I know....

I don't think it sounds goofy at all. Disney World can be very romantic. I almost cried with happiness when I met Mickey, at age 26. *That's* goofy. It sounds to me like she was involved in the choice of where the wedding was to be :). Kudos for planning together.

I will say this -- a house has more "value" than a sparkly rock, any day of the week :). I chose a very small wedding, no engagement ring, and buying a house...over "the works" when I got married. I wouldn't change that for anything. If you can do both, then, go for it.

Others on the group can give you better advice as far as the actual mortgage. I would second the suggestion on checking with a mortgage broker. I worked for one when I was 16, and saw alot of people come through with credit problems (this was a few years before the 80's recession and collapse of the housing market).

You know, thinking about it, I've worked for both a mortgage broker and a credit union. You'd think I'd have learned *something* about money and debt before now *heh*.

Gwen
Goofy over 'da big Rat'. :)
Print the post Back To Top
No. of Recommendations: 0
I will say this -- a house has more "value" than a sparkly rock, any day of the week :). I chose a very small wedding, no engagement ring, and buying a house...over "the works" when I got married. I wouldn't change that for anything. If you can do both, then, go for it.

Oops. One explanation of a thought -- if you can do both *affordably*, then go for it. If someone is charging the wedding (or otherwise getting into debt for it), then, I don't think adding a house on top of it is a good idea.

Keep yourself out of 'bad' debt (revolving credit or direct loans), and have your 'good' debt (house, student loans, etc) be as controlled as possible :).

Gwen
Print the post Back To Top
No. of Recommendations: 0
Regarding your mortgage qualification...from what I know what is really important is the past two years unless you have a BK or something that severe. I was looking into this last year and each loan officer I spoke with was more interested with the past 2 year history than anything else. If you do want to buy together you should be fine...you may pay a wee bit more interest but I think that would be the worst of it.
Print the post Back To Top
Advertisement