My wife and I are looking to buy a new house. This will be our first time purchasing a house. She has great credit and I also have good credit although I have a pretty decent amount of debt with student loans and medical bills. My question is will we get a better offer if we just go with her name and credit score or should we use both of ours? We'd really like to not put much down in the process, will First Time Homebuyers help us with not having to put much if any down? Thanks, sorry for the mortgage question on the sports board.
Quick question about mortgages from some experts.
- Thread starter Dogma
- Start date
My understanding is that they only use the buyer's info. Theforefore, if you put the house in her name, they will only look at her credit score, etc. However, they will only look at her income in determining what you can qualify for. Therefore, she will need a pretty good income to qualify for purchasing this house all by herself. The deed of trust will only show her name.
edited to say I am not a mortgage expert, so someone please correct me if I'm wrong.
edited to say I am not a mortgage expert, so someone please correct me if I'm wrong.
1. If you are applying for the loan in both names, we work off of both incomes with the lower of the two borrower's middle credit score. Unless one of you has a score lower than minimum requirements, this will more likely come into play ona conventional mortgage which uses credit score to help determine Fannie Mae hits to rates. If you are going FHA, the credit score does not factor into determining rate.
2. If you end up with just your wife on the loan due to either credit scores, or you have too much debt with you on the loan with her, then the loan (debt) will be in her name but in MS you will be on the deed of trust at closing and have joint survivorship to the property should anything ever happen such as death or divorce.
3. As for the least down payment, there is bond money but it's not quite as attractive as the old bond money program as the bond money is an actual loan now. Secondly, there are income limits for the household that make exclude you from the program if you make too much household income. It varies by county. USDA rural housing is a popular form of financing now as it allows 100% financing but again there are income limits and the property has to be in certain geographic locations. If you are not a veteran, then VA wouldn't apply but if you are that is a great option. Lastly, if none of the above works for you, then you are looking at 3.5% down on an FHA loan. Rates on it are good...3.875% on a fixed 30 right now. The monthly pmi sux but it's the price you pay for the downpayment.
Let me know if I didn't answer all your questions.
2. If you end up with just your wife on the loan due to either credit scores, or you have too much debt with you on the loan with her, then the loan (debt) will be in her name but in MS you will be on the deed of trust at closing and have joint survivorship to the property should anything ever happen such as death or divorce.
3. As for the least down payment, there is bond money but it's not quite as attractive as the old bond money program as the bond money is an actual loan now. Secondly, there are income limits for the household that make exclude you from the program if you make too much household income. It varies by county. USDA rural housing is a popular form of financing now as it allows 100% financing but again there are income limits and the property has to be in certain geographic locations. If you are not a veteran, then VA wouldn't apply but if you are that is a great option. Lastly, if none of the above works for you, then you are looking at 3.5% down on an FHA loan. Rates on it are good...3.875% on a fixed 30 right now. The monthly pmi sux but it's the price you pay for the downpayment.
Let me know if I didn't answer all your questions.
It was on FHA and they figured it with both our credit, then just my wifes. With just hers we got a much better rate. any idea why? Her credit is much better than mine but I read above where you said FHA rates dont base on credit score. Just curious as to why our rates were different?
I can't speak for every lender, but most lenders do not tier pricing on FHA rates based on credit score. However, if your score was in that gray area of say 620-640 or 600-620, there could be pricing hits for that. But, in our case where we are looking for a middle score of 640 to do FHA, there are no hits to the rate above that. Without knowing your specifics it's hard to say but it does sound odd unless again your score was around 600 and your wives was over 640.
Why would he have to sign the deed of trust? If she bought the house and her name (and her name only) was on the warranty deed, there would be no need for him to sign the deed of trust. Also, no need to sign a quitclaim because he never had any vested interest in the warranty deed. Now if both names were on the warranty deed, then I can understand how the deed of trust cannot be in her name only.
I know tons of people who have bought property and financed it without the spouse being listed on the warranty deed or deed of trust. Happens all the time.
I know tons of people who have bought property and financed it without the spouse being listed on the warranty deed or deed of trust. Happens all the time.
Miss. Code 89-1-29 requires all spouses sign any mortgage of their homestead.
Now, arguably the house is not his homestead until he lives in the house (which usually doesn't happen before closing), but out of an abundance of caution, the lenders and attorneys require both spouses to sign the deed of trust anyways. Basically, MS law wants to make sure a spouse knows when a lien is being placed upon the spouses homestead if she is not on the loan.
ETA: earlier post listed wrong statute
Now, arguably the house is not his homestead until he lives in the house (which usually doesn't happen before closing), but out of an abundance of caution, the lenders and attorneys require both spouses to sign the deed of trust anyways. Basically, MS law wants to make sure a spouse knows when a lien is being placed upon the spouses homestead if she is not on the loan.
ETA: earlier post listed wrong statute