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I have bad credit but my husband had a credit score of 690, but I have higher income.

Can I gift him the down payment? However, we won't qualify for as big of a loan if I am not on the application. Any advice would be great, thanks. by SaraBauer from Bridgeport, New Jersey. May 16th 2013 Reply


Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,205 contributions

There are a number of programs that will allow the gift of down payment funds from a spouse. You are correct in that if you are not on the transaction your income cannot be used to qualify. One question would be why your credit is bad and are there things that can be done to quickly get it where it needs to be. If not, then only his income will work. Work with a local Mortgage Banker/Broker rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of MANY lenders, not just those of ONE bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

May 16th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Gift is fine. You have it right; the loan credit approval is based on the lower middle FICO score.

May 16th 2013
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Jamie Edwards (JamieLynn)
#37 ranked lender in New Jersey - 13 contributions

Hi Sara. Jamie from Woodbury here. You have several options. You can either use only your husband to qualify and gift him the down payment, or you can make an attempt to clean up your credit enough for you to qualify as well. It all depends on what exactly makes it "bad." Also, if you're considering looking in or near the Bridgeport area, you may qualify for a loan with no downpayment. Give us a call if you'd like to go over details. 856-853-1234 I look forward to speaking with you.

May 16th 2013
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Tim Howard (TimHoward)
#75 ranked lender in Ohio - 52 contributions

Freddie Mac loans will allow a back-end DTI(Debt to Income) ratio of up to 55% where as Fannie caps at 45%. Should help increase your purchase price if you can't be on the loan. This is the case in Ohio anyway, be sure to check with a local banker or broker for guidance.

May 16th 2013
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 199 contributions

Hi Sara, assuming it is not a joint account you can do FULL gift on fha loan. Fnma & Freddie have different guidelines. We are local NJ Lender / Broker call my office @ 908-516-2190 or e-mail carlos@keypointmtg.com and one of our loan officers can review your situation and answer all questions.

May 16th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yes, You can gift it to him

May 16th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,263 contributions

My advice is to forget about buying a house today, and focus all your energy on improving your credit. Once you improve your credit, the lender world is at your feet.

May 17th 2013
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