Article Score0

My name is on the mortgage for our home that my husband and I have had for the past 22 years. I now want to refinance at a lower rate and also have my husband’s name on the title (I thought this would be a formality since we’re married, but does that depend on state? We’re in Oregon). We’ve been self-employed, but now almost all income is husband’s Social Security. My credit score is high (About 877 out of 940), Husband no credit score. Bank says underwriter won’t approve because Husband has no credit score but all the income, and Wife has high credit score but no income. We have never been late on any payments in 22 years and only have home loan and 1 low-balance credit card for debts. The interest on our home loan is 7% and want to save money by refinancing to about half that percentage rate.

Are we indeed stuck in a catch-22 where our income/credit score cannot be considered as COMBINED as a married couple?

5 Thoughts on What if I have a good credit score, no income; husband has no credit score, but income.?
  1. Reply
    June 29, 2012 at 12:01 pm


  2. Reply
    June 29, 2012 at 12:59 pm

    I do believe that your problem will be that they consider BOTH of your credit scores as a married couple. Since your husband has no credit, I think that may be a problem for you in being able to get refinanced. Good luck.

  3. Reply
    M W
    June 29, 2012 at 1:06 pm

    Instead of refinancing, you could send in additional principal payment with every monthly mortgage payment you make.

    You don’t say how many years are left on your current mortgage, but if it’s under 10 years, simply adding additional amounts will greatly reduce the amount of interest you pay for the duration.

    Refinancing has costs associated with it, and you have to consider what amount will be saved with reduced interest rate. If your mortgage balance is not huge, the savings for a 2% reduction in interest will not make a significant difference.

    Since your husband’s score is low and you are self employed, you will not get one of those terrifically low interest rates.

    Find an online Amortization schedule website, plug in your mortgage numbers and see what happens.

  4. Reply
    June 29, 2012 at 1:39 pm

    Well, what I understand you have a good credit score of 877 , which is considered to be a very good credit score and your husband has no credit score, now you both want to take a loan, the problem here is that for getting loan, you must have to prove that lender that you are good in paying in past and have decent income so you can easily repay your credit.

    Why did not you first try to get an employment, if you get some decent one they you can prove lenders that you are now earning a decent amount and have good credit score. This might help you to get loan at decent rates.

  5. Reply
    June 29, 2012 at 1:47 pm

    As I understand your question you are dealing with two separte issues. The first one deals with refinancing your loan, and the second with transfering title on the property.

    The simplest way to solve both problems is to have your husband build up his credit score. (Amazing that he hasn’t taken credit all these years). Here a few ideas to build the credit card from scratch:
    1. Add your husband as as an authorized user on your card
    2. Open a joint account with your husband and each of you get a credit card.
    3. Buy jointly an appliance or big ticket item on installment.

    For more information I recommend that you read the article for more information about credit scores and how to build them up. You will also find links to information about how to get and monitor a credit report.

    Once your husband has a credit score, you can then proceed to do a refinance on both of your names.

    Leave a reply

    Register New Account
    Reset Password