Profile picture for trojan82

Spouse - great credit medium income, me - poor credit but higher income?

My husband has great credit, but makes $45,000/year, I have poor credit, but repairing, due to identity theft, but make $90,000 plus bonuses.  With $75,000 down payment, can we get a loan for a $400,000 house in PA?
  • February 23 2010 - Doylestown
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Answers (8)

Profile picture for sryan1980

If you start speaking with mortgage reps, you will likely find that poor credit negates your high income. You'll end up trying to qualify based solely on your husband's lower income and it will be difficult.

  • December 26 2011
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Profile picture for BobDandi
One technique that can help you improve your score is to do a secured loan from a local bank. This loan is established by getting a certifiate of deposit through a local bank that secures a loan made to you for an equal amount. You then pay the loan back over time. The bank then reports to the credit agencies that you have had a good payment record on that loan and it will then show you have recently established credit with a good payment history. This will improve your score often times. 
  • December 26 2011
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Profile picture for Cindy Quinton
@ Evan, how would a non-occupant co borrower help? Her husband or do you mean to seek out someone else to cosign?

I have been doing some reading at www.myfico.com on their forums and there is quite a lot you can do to raise credit scores yourself. I would suggest that you look at doing that first before you try finding a credit repair company. You will find that what other have done and are willing to assist you with is extraordinary, and free, free, free.

I would also suggest reading long and hard and speaking to several reputable lenders before hiring a credit repair company. There are so many that flat out crooks and many more that get nothing done. Also beware I had a family member that was reffered to a credit repair company by mortgage company that milked them for $2,500. And later found that they were in cahoots. So spend some time choosing a credit repair company carefully, also.

And now I notice this an old post, but the advice here was all learned the hard way....so still good advice for anyone reading it.
  • December 26 2011
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Income AND credit scores for all borrowers are factored into the decision for a loan approval.  If your credit score is not acceptable you will not be an eligible borrower.  $45,000/year will most likely not be enough income to carry a $300,000 mortgage with taxes and insurance.  FHA allows for non occupant coborrowers which can help increase the income utilized which is the first option I suggest in such a case as this.  Good luck!

  • December 26 2011
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Profile picture for KayDubb
Depending on how low your credit score is (I've heard the lowest most lenders take is a 620) you will still be able to get approved, assuming you don't have a lot of debt and everything else is good, you just might have more costs associated with the loan for having a low FICO. When my husband and I were shopping around for our refinance my score was great but his wasn't and most of the lenders took the lowest middle score reported from the agencies (so his was a 642) and then depending on your loan to value ratio your pricing may be a little worse for certain rates than people with better credit will get. It was kind of hard to shop online without applying or talking to someone because most online companies are posting rates assuming your FICO is like a 720. So if you see some good pricing, I would double check and make sure that with your FICO you're still able to obtain it.
Oh and I found out that if you apply at a few different mortgage companies and they pull your credit, you only get hit once as long as it's within a two week time frame, no matter how many companies you apply with.

Hope that's helpful
  • March 06 2010
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Profile picture for RJ Ham
I would agree with Michael, even though you could do this on your own, if you do not dispute these items with the correct documentations and requests the process can get drawn out and end up taking much longer then it should.  When you start looking at credit repair companies make sure you watch out for a few things.  
1.  How do they charge, is it a flat fee, monthly or or per dispute? Flat fee is going to be the best for you. If you get involved with a monthly service they are going to drag the process out for months only disputing a few items at a time instead of all upfront.  Companies that charge per dispute will start racking up the cost especially if additional follow up is needed.  
2.  When are they charging?  Federal law state that you are not suppose charge until your services are rendered.  Make sure the company is willing to do the work before charging you, this would include a free update and not charging an enrollment fee or any other erroneous fees.
  
Hopefully this helps.
  • March 05 2010
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There are numerous credit repair agencies that can help you repair your credit much faster than you will likely accomplish this without professional assistance.  Some agencies charge as little as $395 and in my experiences, I have seen scores raised as much as 119 points in just 30 days.  With the derogatory filings coming from an identity theft case, professional credit repair agencies and attorneys can usually correct this information in 30 days.

When selecting a credit repair agency it is critical that you do your diligence to ensure that the company is a legitimate, licensed agency.  I recommend requesting multiple references or better yet, asking a mortgage lender for a reference to a company they have experience using. 

Also, Depending on where your credit score is now, you may also potentially qualify today.  Everyone views their credit history from their own perspective.  To some borrowers good credit might mean 680 to others they may believe they have a good score at 620.  If you are currently at a 620 score or higher, there are lenders (including myself) that could help you today.  


Another point that is more specific to your particular scenario is your down payment and the purchase price of the house.  Putting $75,000 down on a $400,000.00 house is a 18.75% down payment, or 81.255 LTV.  You may ask "well why does this matter"?  If you can either find a house that is a little bit lower in price, or find a slight bit more money (in this case $5,000) you can reduce your loan to value to 80%.  Still you may be wondering what I getting at.  If you loan to value is 80% or lower (or to say it in another way, If your down payment is 20% or greater) you will not be required to pay mortgage insurance.  There is also a very real chance that you will qualify for a lower interest rate.  The combined effect of this will save you hundreds of dollars a month and tens of thousands of dollars in interest over the life of the loan.  

So while you are waiting for your credit file to be corrected, (hopefully only 30 to 60 days) you can hopefully save the additional funds to bring that down payment up to a full 20%.  Again, this will save you thousands over the term of the loan.

I have several credit repair agencies that I will gladly refer you to if you are interested.  If you would like more information regarding this please email me at MBardy@ProsperityLendingTeam.com and I will gladly point you in the right direction.

Best of Luck,

Mike Bardy

  • February 23 2010
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Profile picture for tonygim
I suggest you spend 8-24 hours and simply fix your FICO score.  It may take time.  It will take 8-24 hours of study.  But, you can improve your score.  Your goal is to get to a 720 FICO score within 2-3 months.
  • February 23 2010
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