QUESTION
If I marry, can she apply for a home loan and include my income her credit score is over 800?
Asked on Oct 02nd, 2016 on Bankruptcy - Nevada
More details to this question:
I have a chapter 13 and I'm waiting for the discharge. Together, we would make $100,000 a year.
6 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Income level and credit score are two entirely different things. For example, if a person with perfect credit and an income of $100,000 a year applies for a $2,000,000 mortgage with payments of $8,000 a month, they will be declined because their income isn't high enough to make the payments. On the other hand a person with a $100,000 and terrible credit would probably be declined on a $10,000 credit card. They have enough income to make the payments but their history shows they are unlikely to make the payments.
Answered on Oct 27th, 2016 at 7:48 PM
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This is a better question for a mortgage broker as mortgage underwriting standards change all the time. I believe the current rule is that if they use your income, then they also use your credit and they will average the two credit scores. Your score will increase substantially in the few months after the bankruptcy discharge is entered.
Answered on Oct 26th, 2016 at 7:32 PM
Probably, but only your mortgage broker can answer that question.
Answered on Oct 25th, 2016 at 7:58 AM
The chapter 13 and the home loan are 2 separate but related issues. As long as you are in chapter 13, you may not incur new debt without permission from the bankruptcy trustee. Your fiance's credit score is likely much better than yours, so it is difficult to say whether your being on the mortgage would be better or worse. Generally speaking, it is advisable for someone coming out of bankruptcy to be very conservative about borrowing, and that would mean a large down payment on any home you are buying.
Answered on Oct 21st, 2016 at 6:51 PM
That would be a question to ask the lender, not an attorney. Generally, to include a persons income in a mortgage application, both need to be applying for the loan, and for you to apply for any loan right now would require either trustee or court permission.
Answered on Oct 21st, 2016 at 6:50 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Yes.
Answered on Oct 21st, 2016 at 6:50 PM