Short Sale - buying next place (married)

[Eyebolt]

So hopefully, by the end of the month, I will have completed my short sale of my house. We had to move back in January because I got laid off and found another job in a different area of the state (Michigan) and have been renting a home.

Here's my question...on the house that we are selling, it was only my name on the mortgage. My wife was in grad school at the time, so with her bringing no income, we saw no reason for her to be considered on the mortgage. So only my credit score (~800) should be taking the hit. I've read in several places that talk about a waiting period of 18-24 months before getting another loan. Currently my wife is pregnant with twins, and we're expecting them any day. She is a physical therapist, and is planning to go back to work part-time after the girls are born. With the hit my credit will take, we already figured that she would be the primary applicant on the next mortgage. However, since she will only be working part time...we will need my salary to be counted towards the qualification for the new loan. Is it possible that we could be approved for a loan with her as the primary applicant before the 18-24 months with us both on the loan application?

[Evan Bedard]

Hi eyebolt,

Here's my question...on the house that we are selling, it was only my name on the mortgage. My wife was in grad school at the time, so with her bringing no income, we saw no reason for her to be considered on the mortgage. So only my credit score (~800) should be taking the hit. I've read in several places that talk about a waiting period of 18-24 months before getting another loan. Currently my wife is pregnant with twins, and we're expecting them any day. She is a physical therapist, and is planning to go back to work part-time after the girls are born. With the hit my credit will take, we already figured that she would be the primary applicant on the next mortgage. However, since she will only be working part time...we will need my salary to be counted towards the qualification for the new loan. Is it possible that we could be approved for a loan with her as the primary applicant before the 18-24 months with us both on the loan application?

From my understanding yes that is possible, since you are the only borrower on the loan only your credit will be affected through the short sale and your wifes should remain the same...

[Eyebolt]

So do you think that the positive impact of my income (almost twice her part-time salary) would be greater than the negative impact of my credit history towards her applying for a mortgage with me as a secondary applicant?

[scottp999]

For married couples, some large banks take the lower of the husband or wifes credit quality to price the loan. Don't be suprised if that happens.