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My boyfriend and I are looking at purchasing a home within the next year, but we have run into a few problems. My boyfriend is a veteran, so he would like to use the VA loan because of the zero down payment and lower interest rate. Since we aren’t married, I would not be involved in any part of the loan. His credit score is not very good, but he is working on getting in improved so he can be approved for the loan. One lady he spoke with said that after his credit score improved to the required number he would probably be approved for about $ 175k (which wouldn’t get us much in the area we live).

I would like my income to be part of the arrangement because then obviously we could get a more expensive home. I was considering not using the VA loan and just using a conventional loan so that we would both be on the loan an be approved for a larger mortgage, but I am not sure if the VA is that much cheaper to make a difference. I know that we would need a down payment for a conventional loan too.

Also, I know I cannot get a loan with just my name on it because my debt to income ratio is too high (school loans), but my credit score is excellent (750).

So does anyone have any suggestions on which route to go? I know getting married would make things easier, but I am still waiting for the ring 🙂 and I am thinking the house is going to come first.
Caren- As I explained, he is working on getting his credit score up. It is about 600 right now. Also, the VA loan requires no down payment.

1 Thought on Any suggestions on getting a home loan?
  1. Reply
    Caren
    February 9, 2014 at 11:27 am

    he’s not ready to be a home owner. his credit needs to be good first. the higher his credit, the lower the interest rate. does he even have a savings account with enough in it?

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