Post # 1
My Fiance qualifies for a low interest rate as a first time homebuyer but he would have to buy before we get married in 2 months since I am not a first timer. Well, he just finished school and started his job so of course we don’t have a huge down payment yet.
It’s tough, but I’ve been considering going through with the wedding but not turning in the marriage license. At first, this brought a lot of tears. I’ve been wanting to change my name, be a wife, etc… but we could postpone it for a year. We’ve both already felt married since forever. By doing that, it would allow us to save for a huge down payment and get an amazing interest rate and qualify for more house since having a bigger payment. Would you do it?
Post # 3
I said yes, because you can always get a license in a year or so like you said, and this way you won’t have that extra money stress. Good plan. 🙂
Post # 4
I think you should check into it more. I could be wrong, but I think you would still qualify for the first time buyer program, even if you were married. He would be the primary and you would be the secondary on the account. When we purchased our home, I was not a first time home buyer, but my Fiance was, so they put me as the secondary. If you are purchasing a home together, even if you aren’t married, they would still take you into consideration because of your income and you would also want to be on the paperwork.
EDIT: We purchased our home 10 years ago, so the rules might be different, but I would do some research on it, if I were you.
Post # 5
We went back and forth about the benefits of not marrying due to financial reasons. Since we are single and we have kids, our tax returns are pretty nice every year. We were afraid that once we got married, that would be diminished due to our incomes being combined and we would lose our earned income credit which accounts for about $3500 of our tax return. We had talked about what you mentioned, not turning in a marriage license, but ultimately decided that in that case we would be choosing money over God. We are Christian and have spent the last couple of years trying to turn our lives in the right direction in that respect, and we bit the bullet and got legally married as God would have it. You might look into what the interest rate might be if you do get married, maybe the difference wouldn’t be that much. For example, maybe his first time homebuyers rate is 4%, but if you are married maybe you can still get an interest rate of 5.5% or something.
Post # 6
If you don’t want to be married when he buys, I would postpone the wedding. Inviting family and friends to a wedding, but not being legally married after it, seems quite dishonest.
Post # 7
@noritake22: I’ve mentioned that but Fiance is convinced they would look and that rules are more strict now. Do we want to risk it? Not sure.
@aubrav: I know 1.5% doesn’t seem like much but for example on a 400k loan, that’s a difference of over $300/month which equates to $123,480 over 30 years.
We’d still get legally married within a year. And I say legally because again, we’ve already felt married for a long time. We’re just thinking of our future and kids. I know it’s not as romantic but that’s a college education.
Post # 8
@Talishazwi: But what are the other benefits of getting married, is there places you can save money by getting married. Insurance, investments, life insurance, car insurance, taxes, etc? I would count those into your equation. Also, there is the protection of being married if something should happen to one of you. You should call a loan expert, I qualify for a FTB just last month. I have been legally married for several months and we are having our “wedding” next year.
Post # 9
@Talishazwi: You could talk to a lender about it. It doesn’t mean you have to go through that lender; just ask them if you would qualify.
Post # 10
According to HUD, if a couple is married but one of them qualifies as a first time buyer (not owned a property in last 3 years), then they are both considered first time buyers. So there should be no problem qualifying for an FHA loan.
Additionally, as a married couple it may improve your exemption from taxable income (depending on how much you make). Your best bet would be to talk to an FHA loan officer for clarification. I would also recommend talking to a regular (bank) loan officer as there are pros and cons to an FHA loan.
But to answer your question….it’s your life and if you and Fiance are on the same page, then do what you need to do and don’t let everyone else’s expectations guide your decision.
Post # 11
Thanks everyone. Well be looking into and we’ll see!
Post # 12
Call your realtor and ask. Worst case is the home goes in his name and he is the only one on the contract.
You can always have that changed later.
Post # 13
@aubrav: In places where houses cost an arm and a leg (ie NOT KY), 1.5% is a huge sum of money. For example, a 2-bedroom CONDO with no parking and no extra storage *starts* at $380,000 where I live. You want a detached house? You’re talking over $1 million.
@OP: this actually sounds like a smart financial move. But, it sounds like there’s a shot at you guys qualifying even if you are married, so i’d go for that if possible!
Post # 14
We actually went in to talk about this with our bank yesterday (in Canada, mind you). Even if I was married, I was able to be a first time home buyer. Unfortunately I couldn’t get approved for enough to afford what we want by myself (which is something to keep in mind), but if we both were on the mortgage, we’d still be able to get half the benefits.
Post # 15
This post just reminded me that I have never sent in our marriage license or whatever needs to be sent away. WOW! Procrastinate much? Thanks for the reminder! So as someone who has been married over a year (but maybe not officially?) I still feel, and still am, married. I say go with whatever saves you the most cash.
Post # 16
I know minimal about purchasing a home, but what if the home is just under his name only?