My husband and I want to buy a house as soon as possible. (Which will probably be about 2-3 years from now because we need to save for a downpayment of around $15-20k). He just received a chapter 7 bankruptcy discharge, so his credit is poor. My credit, however, was excellent the last time I checked. His bankruptcy was filed before our marriage, but discharged about 4 months into our marriage. As far as qualifying and interest rates go, if we apply for a mortgage in both our names, will our credit scores even out? Or will his hurt more than mine will help? Also, would I have the option of putting the mortgage in my name alone, even though we are married? Of course, I know this will reduce the amount of income considered, but we want to start out with a house we can afford anyway. And most mortgage calculators suggest buying a house that is way more than we feel we can afford.

H. H.
Fayetteville
Georgia

PS. If you feel you cannot answer this question, please give me some direction as to who could. We are seriously working towards buying our first home and don't know where to turn for answers.

Answer:

H.,

First of all, you don't necessarily have to wait until you save down payment money to qualify for a home loan. You could qualify for 100% financing as soon as one day out of bankruptcy and the seller could pay all your closing costs!

About qualifying and interest rates -- the qualification and the interest rate will be based on the credit of the primary borrower. The primary borrower is the person with the highest income. So if your husband makes more than you, then the two of you would have to qualify using his credit score.

You can qualify for a mortgage loan without your husband's income and credit even though you are married. Some states require that both spouses be on title, but none require both be on the loan.

If you have more questions or would like to see if you qualify, please contact me at one of the numbers below and I'll be happy to help you.

Rick Lanicek
PrimeLending, A PlainsCapital Company
17950 Preston Rd Ste 50
Dallas, TX 75252-5759
(972) 705-9721
(800) 256-0817 Ext 202
Mobile (214) 552-6125
eFax (972) 692-7260