https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Thu, 30 Apr 2026 11:02:16 +0000 https://boards.hellobee.com/topic/home-loans#post-174293 Thu, 31 May 2012 10:05:26 +0000 BabyLove 174293@https://boards.hellobee.com/ <p>Thanks so much guys. My husband is not closing his accounts. One of his issues is the lack of a credit history. His accounts are between 3-1 years old. </p> <p>The only reason I am considering having my father be the co-signer is because I don't want to miss out on the opportunity to get a house while the market is so in favor or the buyer. If properties start to increase in value before he's repaired his credit then I'll be so bummed. Ya know? </p> https://boards.hellobee.com/topic/home-loans#post-174008 Wed, 30 May 2012 19:51:01 +0000 plantains 174008@https://boards.hellobee.com/ <p>Do not close credit cards! Pay them off but do not close them. </p> https://boards.hellobee.com/topic/home-loans#post-173988 Wed, 30 May 2012 19:28:07 +0000 Witz 173988@https://boards.hellobee.com/ <p>@blushink: I am not an expert, but I am fairly certain it's the amount you borrow against your credit limits, not the credit limits themselves. So in your example, if you had a $500 balance on each of those credit cards, you'd have a total debt of $1,500 out of credit lines totaling $17,000 -- less than 10% isn't too bad. If the balance of your credit cards is zero, then you're in pretty good shape. In general, the higher your total credit limits, the better your credit score is likely to be -- so long as your ratio of debt to credit is low as well. That is, if three credit card companies are willing to extend you credit for very high limits, then you've probably been responsible with your credit (otherwise, your credit limits would be lower). </p> <p>In any event, BabyLove, definitely don't have your husband close his accounts before checking this out for yourself, although it sounds like you already know what to do to improve his score. I hope it rises quickly!</p> <p>ETA: Blushink, I just noticed the last part of your comment about the percentage of debit, and so it seems I may have misread your comment... ignore mine if so! </p> https://boards.hellobee.com/topic/home-loans#post-173947 Wed, 30 May 2012 18:05:08 +0000 Mrs. Jacks 173947@https://boards.hellobee.com/ <p>I would invest in fixing his credit before trying to get a loan. They use credit scores as a gauge because it's a predictor of default. A year or two of on time responsible payments should help get him on track. You can read about some surprising things that can improve his credit such as decreasing the number of cards, etc.</p> <p>Wishing you the best of luck! </p> https://boards.hellobee.com/topic/home-loans#post-173930 Wed, 30 May 2012 17:47:31 +0000 Mrs. Sunglasses 173930@https://boards.hellobee.com/ <p>@bluestriped bee: interesting. Ya, for us (if im not mistaken) i t's the credit limit. So say you have 3 credit cards with limits of 2, 5 and 10K you are 17K in debt even of you only have 2k total on them. </p> <p>Basically it's the percentage of the amount you "borrow" that affects your credit score. </p> https://boards.hellobee.com/topic/home-loans#post-173873 Wed, 30 May 2012 16:41:16 +0000 BSB 173873@https://boards.hellobee.com/ <p>@blushink: I was told not to close cc's when I was home buying. I think it looks bad when you close cc's. Maybe this is different where you live. I was told to leave them open and empty, if possible. If I remember correctly, each cc has a credit limit and maybe a balance. If you have 5 credits cards with a combined balance of $2000 and combined credit limit of $10,000; you are using about 20% of your credit limit. If you close credit card with no balance but had a credit limit of $2000. By closing that credit card, you now have $2000 of debt spread out between 4 cc's with a combined credit limit of $8000. Now, it looks like you using 25% of your debt allotment. I think banks like to see how responsible you are with debt, not how many credit cards you have open. I think that is why they recommend you ask your creditor to raise your credit limit so your debt ratio doesn't look that high. </p> https://boards.hellobee.com/topic/home-loans#post-173844 Wed, 30 May 2012 16:24:25 +0000 tororojo 173844@https://boards.hellobee.com/ <p>If you guys are actively paying down some of his debt at the moment, it might help out to wait 6 months or so. If you've added him to some of your older accounts, that should help his score, but it takes time for the score to improve. Also, I'm sure you know this but be really diligent about not opening any new accounts or inquiries, and don't close old accounts--pay them off but keep them open or his score will go down, not up. </p> https://boards.hellobee.com/topic/home-loans#post-173799 Wed, 30 May 2012 16:01:24 +0000 mediagirl 173799@https://boards.hellobee.com/ <p>Can you apply for the loan on your own? We did that - my husband's name is the only name on this house because I still owned my house when we bought it. It also helps you stay within a certain price range when shopping for homes. :) </p> https://boards.hellobee.com/topic/home-loans#post-173755 Wed, 30 May 2012 15:31:43 +0000 Adira 173755@https://boards.hellobee.com/ <p>@BabyLove: I'm not sure what the limits are, but I know that FHA loans require a lower credit rating than conventional loans. My husbands credit was low 600s (I think) when we applied for our FHA loan and we still got an awesome interest rate.</p> <p>Also, if you really want a house now, there's always the option to refinance in the future when your husband's credit is higher. It sucks because you have to pay closing costs again, but it is an option.</p> <p>By the way, check out this website:</p> <p><a href="http://www.fha.com/fha_article.cfm?id=200" rel="nofollow">http://www.fha.com/fha_article.cfm?id=200</a></p> <p>According to that, the minimum credit score is 500 and that with a 580+ credit score, you can still get the maximum financing.</p> <p>I would look into talking to a lender about your options before you decide to just wait it out. You never know - you could get lucky. Plus the housing market is great right now for buyers so even if you don't get the BEST interest rate out there, you're still probably going to get a better rate than people did just five years ago! </p> https://boards.hellobee.com/topic/home-loans#post-173739 Wed, 30 May 2012 15:22:01 +0000 Mrs. Pen 173739@https://boards.hellobee.com/ <p>Once he gets regular/current on his credit cards/loans, it should take 6-12 months for his credit score to go up. My husband was SO forgetful and never paid bills on time, or never told me about that. So that happened to us, when all of a sudden we applied for a loan and realized his credit was about 600. I was so disappointed! He apologized and now I pay all the bills. </p> <p>Anyhow, all the loan agencies I've talked to (and we talked to many since we were in a similar situation) was that 620 is the absolute MINIMUM, even for FHA (which is what we applied for). </p> <p>So, like PP's said, either take out a mortgage just on your own, or wait up to a year and try again. </p> https://boards.hellobee.com/topic/home-loans#post-173730 Wed, 30 May 2012 15:13:07 +0000 BabyLove 173730@https://boards.hellobee.com/ <p>Thank you. I've done everything I can think of to assist him in fixing his credit (basically just adding him to my credit cards, installment loans). I'm now the sole bill payer. He doesn't have a tremendous amount of debt. He just wasn't responsible about paying his credit cards on time. And he hasn't established a lengthy credit history. So these are things that will take time but shouldn't be too much time. We'll see. </p> https://boards.hellobee.com/topic/home-loans#post-173728 Wed, 30 May 2012 15:11:57 +0000 yoursilverlining 173728@https://boards.hellobee.com/ <p>I would personally wait until your husband gets his credit score up - there is a lot of great info on the forums at myfico.com, they have forums tailored for all types of credit issues (as well as general credit rebuilding, and mortgage advice), so he can address whatever his specific credit issue is.</p> <p>I think for a conventional mortgage you need a credit score around 680+. FHA scores can be lower, but your interest rate will be higher, and if you put the minimum down for FHA, you'll be paying several hundred extra per month in PMI insurance, so it might make more financial sense to wait until he can improve his score. </p> https://boards.hellobee.com/topic/home-loans#post-173717 Wed, 30 May 2012 14:58:03 +0000 Mrs. Sunglasses 173717@https://boards.hellobee.com/ <p>Try not to involve family. It changes your relationship, trust me ive been there. I suggest working on your husband credit score. Get rid of some debt ( if you have) close cc accounts if you have more than one and pay bills on time. If nt ou might have to get a mortgage solo. But I would wait until you bring down his score to buy a house </p> https://boards.hellobee.com/topic/home-loans#post-173716 Wed, 30 May 2012 14:57:45 +0000 MamaMoose 173716@https://boards.hellobee.com/ <p>Would it be possible for you to qualify for the mortgage on your income/assets alone? If you have good credit, that may be the best option.</p> <p>If that's not possible I would probably wait. Does your husband have debt that he is paying off in order to build up his credit? If so I would give it some time to get better before trying to buy a house. You're probably going to get a really high interest rate with that kind of credit score so waiting a little while could save you a LOT of money in the long run. </p> https://boards.hellobee.com/topic/home-loans#post-173710 Wed, 30 May 2012 14:54:43 +0000 BabyLove 173710@https://boards.hellobee.com/ <p>I love coming here for informed information. My husband and I are looking to buy a home. He has less than stellar credit. By 'less than stellar' I mean he has like a credit score of 580- bad news bears. Does anyone have any recommendations on how to proceed dispite this barrier? If we should proceed at all. Maybe you guys know of a good FHA loan company that may be able to help? </p> <p>My other alternative is to ask my father to help out. And while he's got all of the qualifications to help, he makes things difficult and I'm usually afraid to get him involved. </p> <p>Really, any advice at all would be great :) </p>