Will Foreclosure On Husband’s Credit Effect Wife From Buying House?
I аm engaged аnԁ probably going tο hаνе a foreclosure οn mу record shortly. Mу fiance hаѕ perfect credit. Once wе ɡеt married, wіƖƖ ѕhе bе аbƖе tο bυу a house under hеr name οr wіƖƖ mу foreclosure οn mу record prevent hеr frοm buying anything?
First off Frank R is a complete moron, in my opinion. A no-ratio loan is for untrustworthy, lazy and semi-retarded mortgage brokers to use.
Let me answer your question. Once you and your fiance do get married, you do have an option to leave her off of the loan. If that is what you choose to do, then the foreclosure won’t be found out. However, if you by yourself cannot qualify for the loan from a “debt to income” ratio perspective, then she will have to be added.
FHA I believe will allow a person 2 years out of foreclosure to repurchase a home. You will need to provide to the lender a LOX “letter of explanation”, as to why she had to foreclose the first time. And if in fact, how her financial situation has improved. The “intelligent, non-retarded” mortgage broker will be able to help you understand what they will need to help you qualify for the loan.
If you ever, speak with a mortgage broker and they don’t verify income, employment, reserves and all the necessary information. Run in the other direction. Because all this will do is end up placing you within a home that you can’t afford. Or have you pay a higher rate, than you qualify for.
The problem with this industry is people like Frank R were either working a fry machine, or cleaning a horses stable. Found out that there is a way to get quick money for doing “less work”, and now think that they know the industry.
Email me if you would like some specific questions to ask brokers when interviewing them. You’ll want to at least speak with 5 brokers. Do not provide each and everyone with your information until you feel comfortable, and trust them.
I can give you a list of other things to ask to help determine whether they are Frank, or someone you’ll want to do business with.
Again, just my opinion.
I am a mortgage broker. We do loans like this. There is an important item to remember: If you are not on the loan, then your income cannot be used to qualify for loan.
When incomes are needed to qualify for the loan, we do a no ration loan. We do not report income. Rate is slightly higher, but you can get loan. Loan is still in her name alone.
You can send me email, if you want more info.
Have your fiance get the loan in her name only. FHA will make you pay 2 kinds of insurance 1.5% and.5% of your base loan amount called UFMIP and MIP. Conventional will charge you up to 2 points (or 2% of loan amount) on top prime plus lender points. Broker will keep you broker. You will pay big points up front for your credit blemishes. Your rate won’t be the factor. The points will. If you can’t pay the points, you will have to settle for a higher rate. The lender (if direct) will GIVE your fiance points for having good credit.
Get your credit straight, make sure your report is clean and when it comes time to refinance, get your name on the home ASAP. If you are concerned about her dumping you and keeping the home, that’s understandble however that’s what marriage is all about.
If you need a hand with your credit report, contact my web site: http://www.communitycreditcoach.com
Get a copy of your credit report and call me.