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What to do when one spouse has good-credit, low income and other has bad-credit, high income

I am looking for advice on how to go about getting a home loan (joint application or one spouse by themselves) and how much we can borrow for our future home. Here are some data:

First time homebuyer
$10,000 downpayment

Spouse A:
800+ credit
65K annual income
$575 monthly payments on long term debt (car and student loans)
Minimal revolving balance

Spouse B:
Middle FICO score 630 (co-signer on two delinquent student loans)
95K annual income
$400 monthly payments on long term debt (car)
Minimal revolving balance (Less than $2000)

Thanks,
Mike
  • December 20 2011 - Town of Oswego
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Answers (2)

You can do quite a bit to raise your credit scores yourself. Go to www.myfico.com and click on the "community" link. You will find a self educated group who is extremely friendly and helpful on raising credit scores and the steps to take (far more than any article I've read anywhere).  Just a warning, but a lot of lenders don't know anything about raising credit scores and may give you bad advice. So go to myfico and educate yourself. You need to start by getting all three credit reports from www.annualcreditreport.com and checking for any inaccuracies. Anything beyond that has to be handled exactly right, so again you need to read up.

I don't think you will have far to go (you are possibly high enough now), especially if you haven't had any late payments in the last 12 months.

I'm assuming that you have applied for something recently and that's where the scores came from?
  • December 20 2011
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Around $300K using spouse A income only. You can probably get a Jumbo FHA loan by tweaking the credit over 640 or maybe as is depending on the credit itself and late payments in the last 12 months.   
  • December 20 2011
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