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Credit and Application Help!

by Sarah

My fiancee and I have been house searching for almost two years now.

It has taken so long because we can't find a house we both like, but questions such as "do we want to stay in the area" or "the schools aren't that great" keep us perusing the internet for tips.

However, our biggest issue isn't schools or settling down, it's money. He has an awful credit score, we have been doing some credit repair but due to credit cards and things of the like that he has had to take on because his mother stopped working and his mother and father were separated.

I don't have the best credit scores but it is considerably greater than his. On top of that, I'm now working to stay home and take care of our daughter.

He just quit one of his two jobs but is being hired elsewhere for $13 an hour. We just ran across a house, horrendously out of our budget, but we both loved it. The house has sparked the urge to find a home since we've been living in apartments for about almost 3 years now and are quickly coming to hate it.

Now, I really want to know what we could possibly do to appeal to banks and lenders to get a first time home buyer loan? I have the better credit of the two of us, but I'm not working.

We could get married in the courts to help, but then I won't get health insurance, which at the moment is a big issue.

My father, who has excellent credit, offered to buy the house in his name, then revoked it saying that since he already owns two houses, the taxes we would have to pay, since it is no longer a home but a "business" would be sky high.

So, other than taking the time to fix our credit, is there anything we can do? Most of the houses that we could get on loans a few banks have "offered" are in awful parts of town.

We have never defaulted on any payments, pay everything on time, but it still seems like the credit world views us an untrustworthy.

Is it possible to find a bank to lend us the money necessary? Are we stuck with the really awful run down houses as our only option? Will getting married help or hinder? Who should be the primary applier? Should we take my father's offer, even if the rates and taxes will be higher?


P.S. any information I gave in regards to how the housing works is what I was told. So, if something is actually false, I was lied to!!! :]


Hi Sarah and thanks for stopping by my blog and asking your questions.

Thanks for the details, I have a rather good picture of what you're dealing with here.

First, I must stress that when buying a home, you do want to consider resale before buying it. Schools, shopping and the overall neighborhood play a big part in this.

You want to be able to sell the house for a profit (hopefully) someday.

Buying a home is like sitting on a 3 legged stool. Have you ever tried that? It takes balance.

One leg is credit, then the second leg is income and the third leg is the down payment. You need all three of these to get a mortgage and buy a home.

You say that you have the better credit but you are not working. Your soon to be husband is working but does not have good credit. Since credit is one of the three very important legs to a mortgage, you need to get that in order first.

Without a credit score for your husband of at least 620, you will not find any lenders willing to take you on for a mortgage loan. Sorry.

As far as getting married, well that's good, but getting married right now will not increase your chances in getting a loan.

Now while it is commendable that your father is willing to help, that is not a very good option either. You will not be able to homestead the property, the interest rate is higher and the down payment will be 20% or more.

Your best option is to get your credit in order and wait it out. Sorry, I know this is not what you wanted hear, but that is the same advice I would give my daughter if she were sitting across the table from me.

I wish you the best.

Kind Regards,

Jeffrey Ragan

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