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My husband & I were planning to buy a house. We are looking for a house in between $ 250,000 – $ 300,000. We only have 10% down so far. Our problem is: We’ve been into 2-mortgage company so far & they both told us that lenders can’t give us a loan, even for 20%, in our situation. We live in Bay Area, CA.

1) My husband have a joint mortgage with his mom (but he’s not on the title). The loan balance as of now is $ 242,685 (originally $ 250,000).
He also has a joint installment with a monthly payment of $ 131.

2) My husband has 2 credit card that we are using & the monthly payment is $ 439 on both cards.

3) His median credit score is 687 (667 – 687 – 704).

4) His gross income is at least $ 80,000 a year. I’m a full time student, don’t work, & no credit score yet.

Is there a possibility that we can get a loan in our situation? We need to move out coz of mom-inlaw conflict. How about renting a house? Which one do you think: buying a house or rent a house?

Knowledgeable person please help & advice. Thanks in advance.
We can’t refinance the home coz of the economy right now, & we can’t either coz mom-inlaw can’t qualify. She is retired & no additional income except for her sss pension (lower than $ 1000). Thanks.
The new house will be our primary home & the old house payment will be taken care by mom-inlaw. Husband & I will move to the new house without mom-inlaw. Thanks.

6 Thoughts on Can we get a loan in our situation?
  1. Reply
    kemperk
    February 16, 2014 at 3:06 am

    i see the problem; joint mortgage with mom and you want another
    mortgage for your own home.

    NOT impossible but difficult

    get mom to pay off the current mortgage–by applying for a another
    loan.

    when husband is off that loan, you will be clear for
    a new loan.

    till then, seek out a ‘LEASE OPTION” home purchase.

  2. Reply
    DebbieA
    February 16, 2014 at 3:35 am

    The problem seems to be that your husband is not qualifying on his own. Most likely the reason is because he is on a mortgage loan with his mother. It’s tough to qualify TWO mortgages and especially these days.

    your best bet would be to have mom refinance in her own name and get your husband off of that mortgage. Same with the credit cards. I’m sure his debt to ratio is pulling him out of the game.

  3. Reply
    yobcixelsid111
    February 16, 2014 at 4:00 am

    His score is ok, not great but he qualifies for a loan with slightly higher rates (NOT SUB-PRIME, mind you!!!!). You need your credit score to be as good or higher. I don’t think your debt load is too bad. Have you considered FHA? You can buy a house with as little as 3% down. I would talk to a mortgage broker who can asses your situation and pair you with a lender that will work with your situation. I bought my house that way after being denied by two diff. banks. I went to a broker and they found me a small independent lender that was willing to work with me. The rate was a little high, but I managed. Good luck.

  4. Reply
    Billy Cunningham
    February 16, 2014 at 4:37 am

    I’m guessing his credit is not good enough for enough for a 10% down ,

    he has too much outstanding debt

  5. Reply
    chatsplas
    February 16, 2014 at 4:53 am

    RENT now and plan for future by saving up to 20% down payment. Or SUCK it up with MIL and stay put, pay off debt, save money. ALSO you need to deal with all your debt, or you won’t qualify. Pay off the credit cards and don’t use them if you can’t pay them in full every month. Carrying a credit card balance is financial suicide.

    Sounds like MIL has bought MORE house than SHE can afford. What makes you two think she can afford to pay mortgage–lenders didn’t think so??? This is a ticking timebomb. Hubby having cosigned on mortgage may prevent you from buying until you finish school and start working. Hubby needs to get off joint installment NOW. Even then, getting another mortgage with this one hanging over you will be difficult unless you pay off all your other debt and make really GOOD money upon graduation.

  6. Reply
    ShiphrahPuah
    February 16, 2014 at 5:51 am

    So you would not be on the loan since you have no credit or income. He won’t qualify because he doesn’t make enough for two mortgages that combine equal 500,000-550,000.
    So why don’t you put you mom-in-laws home on the market and find a duplex, that way you don’t really have to “live” with her, just near her?

    What did your lenders say your DTI (debt to income) was?

    EDIT:
    BTW: It does not matter if your mom-in-law is going to pay the mortgage on the first home, the bank wants to know your husband qualifies without her taking 1/2 of the payments.
    What about your mom-in-law being on the loan for the 2nd home too? Would that help?
    OR: Ask your lender how much you would qualify for if you buy a duplex if you counted 1/2 the rent as income?

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