Mortgage in one name, two owners

fire9572 · Joined: 10 Jun 2005 Posts: 3

I just have a quick question. My boyfriend and I are moving and purchasing a new home together. We are acquiring the mortgage in his name only to get the best interest rate, but the home will be paid for by both of us down pymt/closing/monthly note, etc. Is it possible for the mortgage to be in just his name, but ownership of the home in both of our names? We will both have a financial interest in the home even though the mortgage is in only one of our names. What is the best way for us to approach/do this?

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

You should have only your boyfriend on the mortgage and the both of you will be on the deed.

fire9572 · Joined: 10 Jun 2005 Posts: 3

I know it may have seemed like a silly question, but I've never done this before and we weren't sure if lenders have a problem with this type of arrangement or not.

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

No problem.

fire9572 · Joined: 10 Jun 2005 Posts: 3

My boyfriend and I are planning on selling our current home in VA and buying a newly constructed home in NC. Our real estate agent’s market analysis estimates that we’ll net approx. 120k to 140k from the sale. The home we plan to purchase is about $292,000, but won’t be completed til mid to late October of this year.

We want the home and have acquired a buyers agent and put $3k down to hold the house. At closing, we plan to put down at least 20% toward the new home purchase to eliminate PMI – with the down payment funds to come from the sale of the current home. Currently our combined income is about $110k (his earnings are in the low 70s and I’m at 40k).

Currently his middle score is 614, which I don’t get considering the contents of his report. In the past, lenders have told us that his score does not really reflect his credit worthiness – and I agree. Everything is paid as agreed and current. I am also paying down his credit cards to raise his score before applying (we both subscribe to score and report monitoring) so I’ll know when the score changes/updates. I’ve been able to do this before and his score jumps 20 to 30+ points at a time usually.

I am the one with credit issues – after a divorce in 2001, I had to file for BK in 6/2002. The discharge was in 9/2002. My current middle score is 595. I have had no delinquent/late accounts since then and all my accounts have been paid on-time and are current. BUT I do also have one collection item that I tried to resolve with the creditor – dated 9/04 for $200 – still unresolved.

Anyway, I believe we would get the better rate if the loan was in his name only because of my BK. I know our credit union would approve him hands down, but he feels that we would get a better rate if we both applied because of the higher combined income. I disagree, especially since we’re putting so much down.

Lastly, we’re both presently employed here in VA, but he wants to work for himself after the move; however, he will secure a job if necessary to close the deal. I do plan to secure employment in NC as well.

we both know we’ll be able to either get a job or make the business grow, and we’ll also have the rest of our funds not used for the home purchase banked as a cushion.

I’d prefer we get the best rate in his name only with our credit union as I’m also worried about unreputable “bad credit” lenders out there. We plan on applying in late July or Aug or sooner once his score gets to where we want it to be – then locking in the rate til the Oct. closing date.

Considering all this, what do you think could we qualify for and what is the best way to approach this?

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Fire9572 it is impossible to evaluate your situation with seeing your credit. It looks like you are driving yourself crazy thinking about all of your options. Would you like to speak to one of our mortgage professionals?