(Closed) My husband has no credit- Mortgage approval?

posted 6 years ago in Home
Post # 3
Member
533 posts
Busy bee

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
Member
1851 posts
Buzzing bee
  • Wedding: March 2012

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
Member
5118 posts
Bee Keeper
  • Wedding: November 1999

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
Member
1096 posts
Bumble bee
  • Wedding: June 2011

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
Member
93 posts
Worker bee
  • Wedding: October 2012

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
Member
2295 posts
Buzzing bee
  • Wedding: April 2013

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 # 10
Member
2295 posts
Buzzing bee
  • Wedding: April 2013

@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!

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