How should my wife and I apply for a lot loan? i

[Dirk Squarejaw]

So its been a long time since I logged in here, but there were always helpful people here so I thought I'd give this board a shot to get some advice. I filed Chapter 7 after my divorce and was discharged in November 2008.

Fast-forward to now and I'm remarried and we are trying to start a family and we have an opportunity to purchase some land in our addition. The addition is split with condos on one side and single-family homes on the other. We currently live in one of the condos and I've never not been current on the mortgage for it. I have an opportunity to purchase two lots at 56% of the list price.

Here's the deal.... My wife has excellent credit, is NOT on the mortgage for our house, does not have a bankruptcy on her record, makes a bit more money than I do, etc. I'm almost 5 years out of bankruptcy and have good credit, but I'm afraid as soon as I put my name on the application and they run it they'll reply with the classic "LOL...sorry". Of course this is something I thought about after 5pm and is going to drive me crazy not being able to call the banks.

So even though we're married, could she get the loan in her name given the fact her credit situation is much better than mine?

[LadyInTheRed]

If your credit is good, you should be able to qualify for a mortgage 5 years after your BK. But, you might not get the best rates. I believe your wife can get a mortgage in her name only as long as the property is purchased in her name. The lender might require you to sign a quitclaim deed to confirm you claim no interest in the property. But, she won't be able to include your income on the application, which might have negative consequences.

Instead of calling the banks directly, I suggest you talk to an experienced mortgage broker who can advise you on the best way to apply for a loan.