Mortgage approval with bad credit.?
My husband and I are thinking about talking to a lender for a home loan. The problem is, I have excellent credit (upper 700s), but I technically have no income and my husband makes around 50K a year and has horrible credit (lower 500s). He owes a few small debts from about 5-6 years ago and one larger debt for an apartment he shared with his ex (only his name was on lease) and she was supposed to stay there and pay (she didn't, this was about 4-5 years ago). Aside from 6K in debt on his report, all we have is his car loan (16K). Would we get approved for a loan or would I need to get a legit job so that we can use my credit score?
- 7 years agoFavorite Answer
I'd advise that he get hold of all three of his credit reports, and dispute all of the debts. If they are that old, they're probably outside of the statute of limitations so it's NOT recommended to pay them. Also, the creditors probably won't have the information to prove that he owes, therefore they have to delete from the credit reports.
Is the apartment being reported to credit? Usually that doesn't happen unless it's gone to a collection agency. I would advise looking at that one very carefully. How exactly did the landlord arrive at the amount? Sometimes they will try to cheat you. If you break the lease and the apartment gets re-rented right away, you can't be charged the entire amount of the lease.... it's limited to what the landlord lost. Also, sometimes they'll try to bill for things which are normal wear and tear. For instance, they tried to bill my wife to change the carpet, when it had never been redone in 10 years (normal wear and tear dictates that it should be changed every 2 or 3 years.) If they're attacking his credit for debts like this, THEY may be liable.
There used to be "no doc" loans, but probably not anymore. Best bet is probably to attack his credit reports.
- CatDadLv 77 years ago
The problem here is that mortgage lenders are going to want all defaults settled/paid off before they will give you a mortgage. Bad debts stay on your credit report for 7 years, starting from the original date that you defaulted. Maybe you should wait a couple of years for these debts to fall off by themselves....Otherwise, you're going to have to settle them first. You might be able to cut 25% settlement deals given the age.
- How to pay collection accounts: http://goo.gl/RTyWw
- The answer below is not correct. The statute of limitations has nothing to do with how long items stay on credit reports...that time period is fixed at 7 years...so don't waste your time disputing the debts as this is accurate information.
- Anonymous7 years ago
You have 2 choices here. Either borrow money from a family member and payoff all the debts owed or wait about another 18 months and they will fall off automatically at that time.Source(s): Retired bill collector 35 years
- ?Lv 77 years ago
Not getting a mortgage approval based on husband's poor credit
Your only chance is YOU having large income, good credit and taking the mortgage out in your name only