My bfriend and I are talking about moving in together next year. I own a house, have a high FICO score and have about 50K of equity in my home along with some cash savings. He has rented for 9-years, has a low FICO score and several collection accounts in dispute with some credit repair company (Kaplan). Ideally, I would like to keep my house, rent it out, and let him get the new house in his name only. I don't want to be on the loan/note at all. He thinks he can get an FHA loan in a year. I was hoping to contribute to the down payment by either giving him cash before the closing or using my cash for updates/repairs to the house.
I don't think he will be able to get an FHA loan with all of these accounts in dispute. He doesn't have a lot of consumer debt, he makes about $100,000 a year, his credit score is about 610-640, his collections total about $1,100. He said he doesn't want to pay the collections b/c they will refresh. He has a few other complex things like a debt he negotiated that doesn't appear on his account as negotiated and a few charge offs. He has 2 car loans, one which will be paid off next year, and he is on a payment plan with the IRS for taxes (which I'm not sure if that shows up on a credit report?).
How realistic is it that he will be able to get a loan on his own in a year? I feel like I'm being selfish by refusing to give up my home or lend my good credit in name, to contribute the new house but…
Read more: How realistic is it to get an FHA loan with collections, disputed items and a low FICO?
