if fiance buys house herself,we marrylater, just put name later?

[Scream2Death]

since i will be having bk, i don't want to affect my future wife's chance of getting a house or bad bad interest rate

the plan is she will buy the house herself with about 200k down payment, credit score of 800+, and a job of 60k per year

we are looking for a house around 500k

Once the house is purchase, would it be illegal for us to marry and then put my name on the 'title?"

i know her job is only 60k, would bank approve ? she has good credit and a pretty sizable down payment for 500k house

thaks so much!

[OneDay]

I do not believe it would be illegal for you to put your name on the title.
$200k down is impressive, that will help alot but $60k a year job on a $300k mortgage will still be difficult.
$300k mortgage would be a monthly payment of around $1900-$2100 a month(without taxes), at $60k her gross monthly income is $5000. Assuming she has no other debt the house payment would be 40% of her monthly gross.

Not impossible to do, but it would depend on the rest of her debt.

[Flamingo]

Your fiance may have trouble getting a mortgage right now no matter what she makes or does unless she pays for it in full. That is a nice down payment but her salary is only $60,000 per year and you are looking at a $300,000 mortgage. What are her other debts and realize also there will be other things to pay for at settlement (insurance, taxes, etc.). What this all depends on is if she can get a mortgage by herself.

In the event she can and you later marry, if she wants to change the deed and add your name on the Deed, that is between you and her. However, when you marry you would be smart to keep your name off any other accounts she has because your BK can show up on her credit reports.

[Scream2Death]

Your fiance may have trouble getting a mortgage right now no matter what she makes or does unless she pays for it in full. That is a nice down payment but her salary is only $60,000 per year and you are looking at a $300,000 mortgage. What are her other debts and realize also there will be other things to pay for at settlement (insurance, taxes, etc.). What this all depends on is if she can get a mortgage by herself.

In the event she can and you later marry, if she wants to change the deed and add your name on the Deed, that is between you and her. However, when you marry you would be smart to keep your name off any other accounts she has because your BK can show up on her credit reports.

thanks for the advice from both of u

[Scream2Death]

I do not believe it would be illegal for you to put your name on the title.
$200k down is impressive, that will help alot but $60k a year job on a $300k mortgage will still be difficult.
$300k mortgage would be a monthly payment of around $1900-$2100 a month(without taxes), at $60k her gross monthly income is $5000. Assuming she has no other debt the house payment would be 40% of her monthly gross.

Not impossible to do, but it would depend on the rest of her debt.

would it be recommended to put a co-signer?

[OneDay]

would it be recommended to put a co-signer?

All depends on who the co-signer is and thier credit. Looking back at what Fl amingo wrote, I reallyhave to agree that it will be hard enough to qualify just with how the mortgage crysis is affecting the loans.

I wish we had $200k for a DP..... We would have a $165k house and $35k in the bank... But then again this is Nebraska and not NY or Cali....

[HHM]

Credit score and BK aside, financially, what you are proposing makes no sense.

First...it would be questionable whether she could qualify for a loan that size based solely on her income. Using the 30% rule, she earns $5,000 gross per month, meaning, by herself, her affordability level is a payment of $1,500 per month. A $300K mortgage at a 30 year fixed rate of 6% has a P&I of about $1,800...then you need to factor in taxes and insurance.

Financially, if at all possible, if the only houses in your area are in that $500K range, you should only put $100K down and SAVE the other $100K. CASH net worth is way more valuable than paper worth (i.e. home equity). Are there no less expensesive houses...is $500K the average home price or are you just being unrealistic in your wants.

At the very least, she can go around to a couple different banks and brokers and see what she can get prequalified for. No point in speculating here...go out and see if she can get pre-qualed.

As for putting your name on the title, it would not be illegal...per se. But when a mortgage is involved, you need to read the fine print about the validity of such a transaction. Keep in mind, the "deed" is technically held by the bank, you cannot simply go in and change it. The best you can do is have her quit-claim half her interest to you, but that transaction may not be worth the paper it is printed on. But to change the deed to any sort of Joint tenancy...you would need to involve the lender.

[Scream2Death]

All depends on who the co-signer is and thier credit. Looking back at what Fl amingo wrote, I reallyhave to agree that it will be hard enough to qualify just with how the mortgage crysis is affecting the loans.

I wish we had $200k for a DP..... We would have a $165k house and $35k in the bank... But then again this is Nebraska and not NY or Cali....

thanks again. the co-signer would be her dad, who has excellent credit 800+, with over 30 years of credit history, but makes only about 40k per year

[BKParalegal]

Here is an idea, buy a duplex for $200k, and rent out the other half. This way instead of having a life-sucking mortgage payment, you actually make money off your money. Now she will have a $60k a year salary, plus rental income. Wash, rinse, repeat.

Good Luck

[OneDay]

thanks again. the co-signer would be her dad, who has excellent credit 800+, with over 30 years of credit history, but makes only about 40k per year

A 800+ credit score doesnt mean you can get a $300k loan... nor does a 800+ co-signer...
Its more about income and % of debt the borrower.

A person with a 700 credit score grossing $150k a year is more likely to get a $300k loan then a 800 credit score grossing $80k.

A credit score doesnt mean your can make the payment, it just means your responsible.

[Scream2Death]

A 800+ credit score doesnt mean you can get a $300k loan... nor does a 800+ co-signer...
Its more about income and % of debt the borrower.

A person with a 700 credit score grossing $150k a year is more likely to get a $300k loan then a 800 credit score grossing $80k.

A credit score doesnt mean your can make the payment, it just means your responsible.

so if her dad co-signs, would the bank allow the loan?

[BK2008]

Why would she need a co-signer? If her credit is that good, and she actually has the $$$DP, if she adjusts her housing needs to a price that is more in line with a $60K income, she would not need all of this.

I am having trouble understanding why y'all want a $500K home, when real estate hasn't even hit bottom in most areas yet? Even DFW area, whose market isn't nearly as troubled as others, is having an drastic increase in foreclosures, which will definately affect the selling prices on homes in the area. And the prices are still dropping, not as drastically as CA & FL, but downward.

Not knowing which area you are trying to buy in, it is quite possible that by next summer, your $500K home will really be valued at $400 or somewhere in that neighborhood, and it will give the mortgage/credit industry time to make the necessary adjustments for future lending practices.

If it were me, I'd sit back and wait out the market for a while. Prices are still adjusting and who knows what the lenders are going to do.

[HHM]

Not necessarily...a co-signer is used when someone is NOT responsible...i.e. low credit score. A co-signer is of little use if the main borrower does not have the ability to pay.

[Logan]

so if her dad co-signs, would the bank allow the loan?

Why don't you go to the bank and find out if she'll qualify. If you put down 200K you may just qualify if she has no other debt or low debt and since most people giving you advice in this forum are not loan officers they are not the one's to answer your question.

A 300K mortgage at 6% is a payment of $1800 a month plus tax and insurance let's call it $2500 a month. That brings your DTI to 50% which could be tough. If the rate is lower and/or you get a 5 year interest only it may help you qualify.

Recommendation: Call your bank or CU and call 1 or 2 Brokers. If you call an independent broker they can shop all banks and give you good advice.

Good Luck,

Logan

[allavdj]

...or you get a 5 year interest only it may help you qualify.

There ya go...some solid advice that is part of the root of the current problem, interest only loans. If you can't afford the payment now, just pay interest and hope things improve, if they don't...you're screwed!