re: House Mortgage Question

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Where the hell are you finding a house less than $200k?

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Lots out there, how much work does it need or where is it are the issues.

House does not need work and it’s in a nice neighborhood. 3 BR 1 bath 1500 square foot living with big fenced in backyard . Yes the price did surprise me I for sure was expecting 200k plus

She needs to add him to her credit cards, you can't be an authorized user on accounts unless your married to them. If UW sees an AU account the lender will make them remove the account and rerun credit. They don't need to shop around. Underwriting guidelines are the same for all conventional lenders. they can qualify for a non conventional lending but that's a horrible idea. If they can't qualify on just her income they need to build his credit and then buy a house. Also Fannie/Freddie are going to require 1yr of credit history before they approve him. BTW I am a mortgage lender so I am not just spouting non sense

Yep she added him on her gas card and I think maybe credit card. Yea they going to wait a year then buy and hopefully they can save another year to be able to maybe put more money down.

Yea you give good info the same thing Regions told them also.

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Just kind of perplexed if a couple can afford $1500 rent then why can’t a bank see that they do pay and wouldn’t have a problem paying a mortgage note. We talking a house less than 200k with 20% down .

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After 2008, it is not terrible that lenders require buyers to be qualified. A $160k mortgage (after putting $40k down on a $200k loan) with insurance, taxes and utilities is going to be at least $1500 IMO. And, with rent they can just walk away. Banks don’t want them to walk away from a mortgage.

If you believe in them being able to pay the mortgage, you can always co-sign the loan. After they build credit for him, they can refi and get you off the mortgage. That is the easiest solution.

Wouldn’t it be easier to just get a credit card?

Is that so difficult?

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They looking to buy a house but he has no credit but she has great credit. He just never owned a credit card or gas card.

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I did the following and highly recommend it. In 6 months, it will boost HIS credit score. In 1 year, it wouldn't surprise me if his credit score is as good as his wife's:

(Oh yea, DEFINITELY do not have him get a credit card or gas card)

1. Go to the bank and open up $ 1000 (or more) CD
2. Take a 6 month loan out against the CD
3. Have the bank setup a new checking account to only be used to auto pay the loan every month (including any fees)
4. After 6 months, the paid off loan gets reported to the credit bureaus
5. Result: credit score jumps tremendously

6. (optional: after 6 month loan is paid, repeat the process for another credit score jump)