Buying a house with boyfriend?
Okay, my boyfriend and I have been dating almost 2 years, and things are going great, we have talked about marriage but want to make sure our debt is paid off first. Im 25 years old, and hes 38. We have been living together renting a townhouse for 1 year and 2 months. The person we are renting out townhouse from wants to sell it, and we have told him we are very interested. We Absolutely love our townhouse. So my questions is how should we go about purchasing it. I have great credit, and like I said we are working in the next 4 months to be out of debt except for our cars, and we have the lease agreement until July. But my boyfriends credit isn’t so good. Right before we met he lost his job, and lost his condo that he owned. it was going to go to foreclosure, but he ended up doing a short sell, but anyways his credit SUCKS, and that’s why we are working so had to pay everything off to build his credit. Im not sure if I could get a loan my self. The townhouse we think he would sell it for $220,000 and I only make $30,000 a year. My boyfriend makes $60,000-$80,000 a year – hes in sales, but with his credit we don’t think we should put him on the loan cause of interest. I could go in with my parents on the house cause they have wonderful credit too, but I hate to ask them to put something else in there name. Do you think they would give me a loan for that amount by myself seeing what I make per year, or will I have to go in with someone??? I just want to make sure I do it correctly and the best way possible.
Yes, the house is worth more than what he will take. And when he bought the house 2 years ago new, it was $253,900. Our market has gone down where we live, but yes he would accept less than what its worth.
As long as his credit scores are above 500 you can get an FHA loan. I know of two banks that willl approve you. Both of you will need to clear up any collections or judgments that youi have if any. If you have any questions send me an email I will help you get apporved
January 31st, 2010 at 10:04 pm
My brother and his wife ended up buying it together but getting a seperate loan each, it meant they were able to get a better deal because the amount for their loan was less. It also means that should anything ever happen between them, they are seperate and can be dealt with much more securely as a business deal rather than getting too messy.
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January 31st, 2010 at 10:49 pm
Sounds like you’re asking for trouble. Marriage would be the best path before buying a home together.
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January 31st, 2010 at 11:34 pm
I would speak with an advisor who can get you some quotes based on you credit and your partners credit too. it also all depends on how much the house is worth, if it’s worth more than your purchase price (is he giving you a discount because you live there?) then obviously the risk is lower because the mortage company have lending on a house thats worth more than the loan. got me? you need to speak to an advisor who can credit check you both and get you some real quotes xx
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January 31st, 2010 at 11:43 pm
Why don’t you buy the house on your own, since you’re the one with good credit. Otherwise it’s possible your credit could end up where your bf’s is…..
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February 1st, 2010 at 12:07 am
hmm, this is a tough one. here’s what i think:
1. not sure that you would qualify for that mortgage on your own. your credit might be awesome, but your debt to income ratio isn’t going to look so good in the lender’s eyes…especially with the more stringent lending requirements.
2. if you put your boyfriend on the mortgage, than you would qualify for more based on ratios, but you would be hurt by his bad credit. this means that your interest rate would be way higher than it would be otherwise.
3. don’t get your parents to cosign. if you default (and don’t say, i won’t miss payments. things happen in life, and you can’t predict what might occur in the next 30 years), than your folks are on the hook for the payments, and it hurts their credit. i’ve seen family feuds start over this situation, with lasting bitterness for years. not worth it. business and family don’t mix. by cosigning w/ them, you would be in a business partnership with them.
4. don’t get a mortgage with your boyfriend. i have said it on here before, but you should never ever buy a home with someone that is not your spouse. if you break up, it will be a huge mess, and you will have no divorce decree that will help you as a legal framework to split your assets. ever see "the break-up"? it won’t be so funny, when it’s your real life. also, as you would both be on the title and the mortgage, you would then have to either a) negotiate a buy-out, b)go through the hassle of "quit claiming" (and both have to agree to this) or c) sell the home, pay off the mortgage, and hope that you have enough equity, and home prices rise enough so that you’re not "upside down" on the house.
overall, i would tell you that you’re better off to wait until you get married to even think about this.
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February 1st, 2010 at 12:29 am
they can use your credit but have his name on it also and use his income too…I did this with a car I bought with my ex (when we were still together, he had bad credit and I had fair credit with a good income) and my husband was going to buy a house with his girlfriend at the time (long before we met) and they used his credit but put her name on it and used her income also…they ended up backing out of the house but I do know that one more signature and the house would have been theirs…go talk to a bank but they are going to want to see how much money is coming in and how much money is going out…its called something along the lines of debt ratio….I just don’t see why your waiting until marriage before your debts are paid off and then your adding another debt in the mix…
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February 1st, 2010 at 12:52 am
As long as his credit scores are above 500 you can get an FHA loan. I know of two banks that willl approve you. Both of you will need to clear up any collections or judgments that youi have if any. If you have any questions send me an email I will help you get apporved
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I am a loan officer