Post # 1
My Darling Husband has no credit, I have good credit but no stable salary (currently working an internship until the end of December and not sure when I’ll get a job due to job market)
We want to go off of his salary- but I’m starting to worry we won’t get a mortgage at all.
The broker suggested trade lines (cable, electricity, rent bills for the last 12 months) but she isn’t sure it will work. I’m getting really nervous that I’m going to be stuck in my apartment for another year.
Post # 3
Use both of you incomes for the mortage. Don’t borrow more than you can pay off easily only on his, if the worst happens in dec.
Youve cleary got savings? You’ve been paying rent and bills. I really don’t see how it would be an issue. Granted I don’t know how the credit rating in America works. I’ve been told mobile phone plans, rent payments etc are fine to show you can pay it off. Just don’t borrow beyond your means.
If you can’t get a loan now, just keep saving and try again.
Post # 4
I don’t want to be a downer, but I think it might be hard for y’all to get a loan. If you on the other hand had the stable job then I don’t think it would be a problem. Y’all are probably going to have to wait…on the plus side, it will give you the opportunity to get a more stable job and/or the opportunity for him to build some credit. Sorry it’s such a pain!
Post # 5
Look around at various lenders and find one that does in-depth underwriting. Dave Ramsey talks a lot about this (as he encourages people to be debt free, which = no credit score). There are lenders that will review you and your husband’s past spending, bill pays, etc, and go from there. Don’t give up hope, but be prepared to put in a bit more work to get a mortgage. Best of luck!
Post # 6
Darling Husband had no credit when we started looking at houses. We opened a Capital One credit card in his name with a $300 credit limit and added him as an authorized user to my credit card. We charged 30-50% of the credit limit every month and paid it off as soon as we received the statement. 7 months later we were approved for a mortgage. both of your credit scores need to be a minimum of 640 to qualify for most mortgages. There are special programs out there of course but you will have the most options if you try to get credit for him.
Post # 7
Darling Husband bought a house a year before we were married, and he had no credit at all as well (no student loans, no car loans, no credit cards, nothing). We went to the bank together for the initial consultation and they printed out his credit report which was 5 pages of “No Report.” Instead they looked at his payment history for rent, utilities and cell phone. He also had a LOT saved up for a down payment (we put down 25%) and that combined with his good payment history other places meant he had no trouble getting a mortage with a decent interest rate and didn’t even need to pay for PMI.
You didn’t say if you have anything saved for a down payment. That might be the sticking point if you don’t. If a large down payment isn’t an option, you might be better off to wait until you get a job and can use both your salaries and your good credit for the loan. Or as PPs suggested, try to build his credit but that will also take time.
Post # 8
Look for a place that does manual underwriting. They are hard to find but may be worth a shot. I believe Churchill Mortgage can do manual underwriting.
Post # 9
@Milo: I can’t use my income for mortgage preapproval- it ends in December and I don’t know what my income will be or when it will start again. We are definitely not aiming above our means- if anything under it. Yes, we do have savings.
@sit1010: My credit score is no problem- if I just had a stable salary I’d be good to go, just need to fix his lack of a credit score.
@Hydra: I’d like to put down 15%, we have enough for 20% but that would leave us with pennies and I’m not comfortable with that. Once I get a “real” job I can easily rebuild our savings.
If you have 20 percent down you don’t have to pay PMI but I don’t mind paying it for a bit and not forking over all of our savings.
@NAvery: Thank you, I’ll look into that.
Post # 10
@accorn: Very smart not to empty your savings for a down payment. Keep in mind you’ll likely have to get a re-appraisal when you believe you’ve dropped below the 80% loan to value to drop PMI. With the two mortgage companies I’ve had, they do not just drop it automatically based on the valur at purchase when your loan drops below that 80%, they required an appraisal. Something to just know so it doesn’t annoy you later!
Post # 11
@NAvery: Thanks, I had no idea