| Posted By |
Message |
chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
|
Is impeccable credit necessary for 80/20?
My credit is great. DH is not so great.
Are 80/20 loans held at higher expectations as far as credit history?
|
Posted 11/30/06 4:07 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Is impeccable credit necessary for 80/20?
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
|
| Posted 11/30/06 4:10 PM |
| |
|
chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
|
Re: Is impeccable credit necessary for 80/20?
Thanks for the info Beth!!
This leads me to another question. If we only put my name on the loan, wouldn't only my income be counted?
|
| Posted 11/30/06 4:16 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Is impeccable credit necessary for 80/20?
Posted by chikita315
Thanks for the info Beth!!
This leads me to another question. If we only put my name on the loan, wouldn't only my income be counted?
yes. I dont think you need "Immpecable" credit - you might have to pay a higher rate though.
|
| Posted 11/30/06 4:21 PM |
| |
|
SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
|
Re: Is impeccable credit necessary for 80/20?
Posted by chikita315
Thanks for the info Beth!!
This leads me to another question. If we only put my name on the loan, wouldn't only my income be counted?
Yeah, thats what I was going to say.. if only one name is on the loan, then only that one income is considered..
I don't think impeccable credit is necessary for an 80/20, but if his credit is on the lower side, your interest rate might be higher.
I would talk to a mortage broker or a bank, they would be able to best answer your questions.
|
| Posted 11/30/06 4:22 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Is impeccable credit necessary for 80/20?
Posted by chikita315
Thanks for the info Beth!!
This leads me to another question. If we only put my name on the loan, wouldn't only my income be counted?
yes- but if you credit is that much better- it might not matter
I would talk to who ever is doing the loan and ask them all these questions- they can run the loan in mutliple ways in order to determine what is best for you
|
| Posted 11/30/06 4:23 PM |
| |
|
MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
|
Re: Is impeccable credit necessary for 80/20?
Posted by Beth1210
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
I don't suggest this. This means that you alone are held liable for the repayment of the mortgage, yet your husband holds title to half of the house.
|
| Posted 11/30/06 4:40 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: Is impeccable credit necessary for 80/20?
Posted by MikesWife
Posted by Beth1210
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
I don't suggest this. This means that you alone are held liable for the repayment of the mortgage, yet your husband holds title to half of the house.
first off- my DH is a mortgage banker- so he suggests this to people all the time
mine credit is over 700- and I wont say what his is- so to mix the 2 could do far more damage to mine- and give us a rate that would not be worth it to buy a house
if the marriage were to end- then the house would be sold and split- he would be contributing to the mortgage- in my case paying the whole thing- so what's the difference?
you could have your lawyer draw up papers a head of time if that makes you feel better- or not put him on the title- which is better for you- but a lot of people don't like to do that- too me I don't care either way-
|
| Posted 11/30/06 4:47 PM |
| |
|
Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
|
Re: Is impeccable credit necessary for 80/20?
Posted by Beth1210
Posted by MikesWife
Posted by Beth1210
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
I don't suggest this. This means that you alone are held liable for the repayment of the mortgage, yet your husband holds title to half of the house.
first off- my DH is a mortgage banker- so he suggests this to people all the time
mine credit is over 700- and I wont say what his is- so to mix the 2 could do far more damage to mine- and give us a rate that would not be worth it to buy a house
if the marriage were to end- then the house would be sold and split- he would be contributing to the mortgage- in my case paying the whole thing- so what's the difference?
you could have your lawyer draw up papers a head of time if that makes you feel better- or not put him on the title- which is better for you- but a lot of people don't like to do that- too me I don't care either way-
Actually you alone on the mortgage is fine. and most likely beneficial if your credit scores are much better than his, but only your bank or broker will be able to tell you this.
You can still have him on the Deed to your house. At closing, the bank will requite that he signs the note and mortgage, so ultimately, he is responsible for the loan. You both are responsible for the mortgage ultimately. You cannot transfer the title until the mortgage is satisfied. The lawyer does not need to draw up anything extra.
|
| Posted 11/30/06 5:00 PM |
| |
|
MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
|
Re: Is impeccable credit necessary for 80/20?
Posted by Beth1210
Posted by MikesWife
Posted by Beth1210
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
I don't suggest this. This means that you alone are held liable for the repayment of the mortgage, yet your husband holds title to half of the house.
first off- my DH is a mortgage banker- so he suggests this to people all the time
mine credit is over 700- and I wont say what his is- so to mix the 2 could do far more damage to mine- and give us a rate that would not be worth it to buy a house
if the marriage were to end- then the house would be sold and split- he would be contributing to the mortgage- in my case paying the whole thing- so what's the difference?
you could have your lawyer draw up papers a head of time if that makes you feel better- or not put him on the title- which is better for you- but a lot of people don't like to do that- too me I don't care either way-
The difference is that people don't always just sell the house and split. Lets say your husband just walks away - he doesn't care about the asset. Now you can't afford to pay for the house. If he doesn't sign the note, he is under no financial obligation to repay it. You are.
Yet, you can't sell that house until he signs over his interest. Which he may or may not do.
|
| Posted 11/30/06 5:14 PM |
| |
|
chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
|
Re: Is impeccable credit necessary for 80/20?
Posted by Hi-Fi55
first off- my DH is a mortgage banker- so he suggests this to people all the time
mine credit is over 700- and I wont say what his is- so to mix the 2 could do far more damage to mine- and give us a rate that would not be worth it to buy a house
if the marriage were to end- then the house would be sold and split- he would be contributing to the mortgage- in my case paying the whole thing- so what's the difference?
you could have your lawyer draw up papers a head of time if that makes you feel better- or not put him on the title- which is better for you- but a lot of people don't like to do that- too me I don't care either way-
Actually you alone on the mortgage is fine. and most likely beneficial if your credit scores are much better than his, but only your bank or broker will be able to tell you this.
You can still have him on the Deed to your house. At closing, the bank will requite that he signs the note and mortgage, so ultimately, he is responsible for the loan. You both are responsible for the mortgage ultimately. You cannot transfer the title until the mortgage is satisfied. The lawyer does not need to draw up anything extra.
Thanks for clearing this up ladies!
Great info.
|
| Posted 11/30/06 5:22 PM |
| |
|
Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
|
Re: Is impeccable credit necessary for 80/20?
Posted by chikita315
Posted by Hi-Fi55
Actually you alone on the mortgage is fine. and most likely beneficial if your credit scores are much better than his, but only your bank or broker will be able to tell you this.
You can still have him on the Deed to your house. At closing, the bank will requite that he signs the note and mortgage, so ultimately, he is responsible for the loan. You both are responsible for the mortgage ultimately. You cannot transfer the title until the mortgage is satisfied. The lawyer does not need to draw up anything extra.
Thanks for clearing this up ladies!
Great info.
Good luck!!
|
| Posted 11/30/06 5:23 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Is impeccable credit necessary for 80/20?
We originally had an 80/10/10 and my credit was excellent and his was just good. We got the same rate as if we both had excellent credit. Our incomes helped as well. Is there anything on your DH's credit that you can get off? Say, something that's old or something that's not satisfied? We had to do this for our other mortgage.
I would not under any circumstance have just your name on the loan and put him on just the deed for all the reasons the other posters mentioned.
|
| Posted 11/30/06 6:08 PM |
| |
|
thiadora
Happy Little Girl
Member since 5/05 3830 total posts
Name:
Thia (Cynthia)
|
Re: Is impeccable credit necessary for 80/20?
If both you and your husband are in title, then you must BOTH sign the mortgage. The title company will not insure the mortgage w/o this. However, if his credit isn't being considered, then he may not have to sign the note. In this case, he would sign the mortgage as an accomodation party.
All owners or parties with an interest in the real property (i.e. Life Tenants) must sign the mortgage because otherwise, if the loan goes into default, there will be trouble with the foreclosure. The bank usually forecloses the mortgage. (They can also foreclose the note--but I really see them only do the mortgage.) To do this, they must name everyone on the mortgage to extinquish their interest in the property. If your husband (for example) was not on the mortgage, his interest would remain outstanding and the bank would not want that. In the event of a foreclosure, they want to be able to have the ability to sell the property free and clear of liens.
|
| Posted 11/30/06 7:19 PM |
| |
|
bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
|
Re: Is impeccable credit necessary for 80/20?
Posted by Beth1210
you might be better off doing the loan in your name only and putting your DH on the title
you will be able to get a better rate- that's what we are doing- my credit is way better then my DH- and I don't want to mix mine up with him-
That's what I'm doing too. You can also do a "stated income" loan. I submitted all of my bank statements, IRAs, etc. But no pay stubs. We just told them what I make (and inflated it a little.) The catch is, you have to inflate it to a number that is believable for your industry. For example, if you're a waitress you can't really say you make $100K.
|
| Posted 12/1/06 9:53 AM |
| |
|
