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Tambralyn

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Unmarried Couple with Poor Credit Planning to Purchase a Home
My boyfriend and I would like to purchase a home within the next year. We are specifically looking at a FHA 203(k) mortgage. Here is my question: We both have very poor credit scores, although his is about 40 points higher than mine. However, I am the primary wage-earner of the couple (his income is less than half of mine), and it is enough to afford a mortgage up to $150K without his income included in the mix. Would it be better for us to focus our energies on improving my credit score? For example, I currently have no revolving credit at all, and my items in collections, although more numerous than his, are smaller dollar amounts. Or should we be focusing on both of them by taking out credit cards and credit builder loans in both of our names? I'm not necessarily looking for a quick fix here (I know this takes time), but I am trying to find the best strategy. Thanks for your help.

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If you're unmarried I don't recommend getting a house together, or at least don't put his name on the title of the house, especially since you state you can afford the house on your own. If you break up, this could become a financial headache more so than as a married couple. Be aware you will pay higher fees, points and interest with a lower credit score.

My personal view is wait and build your credit. I would suggest you perform research online and read everything you can about mortgages and low credit scores. There are some good articles on this site too. 

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