7

I am in joint ownership of a home (50/50). When I apply for a car loan and they are looking at my credit report, do they look at the total mortgage payment as my debt or only half? Does the credit report show I only have 50% ownership in the home?

4

I'm pretty sure it is all of it. How much you own of the house is irrelevant. How much you owe is the important part, and unless you have some extremely rare loan agreement you are both on the hook for 100% of the mortgage payment.

How you split out the payments is your own business and is not reflected on your credit.

  • That is what I was thinking so when I apply for any credit cards or car loans, then they will think my debt to income is too high based on my income unless I have the credit bureaus add a note to the file that I only pay 1/2 of the mortgage payment and only own half of the mortgage. – Rachel Jun 25 '10 at 16:22
  • We are not married. – Rachel Jun 25 '10 at 16:25
  • I'm not an insider in that industry, but as a person who does information technology, I am betting that those "notes on your file" are in some kind of comments section and when someone runs your credit it isn't figured into the math and they won't see it unless they are going through it VERY thoroughly. – JohnFx Jun 25 '10 at 22:01
  • Even if there was a note and the creditor saw the note, I doubt it would do any good. It is likely that you are liable for 100% of the mortgage payment--even though you only pay 50%. If the other owner was not able to pay their half of the mortgage payment, the mortgage lender is not going to settle for a 50% payment. Because of this, I'd expect future creditors to look at the entire mortgage payment when deciding to lend you money. – firedfly Aug 7 '10 at 1:04
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They look at the total amount of the mortgage (the ownership isn't considered).

I ran into this problem when I bought my first house; I was listed as co-borrower (and co-owner) on my mom's house. This caused no end of problems with the lenders.

We eventually got it to go through by putting her as co-borrower on the mortgage for the new house. That way, the total amount of the old mortgage was still considered as debt, but I had both incomes considered, too.

I'm not sure if a lender for a car loan would do the same.

Remember, it's a good idea to check your credit report on a regular basis. Checking your own report yearly doesn't affect the credit score, it's free, it lets you know exactly what your lenders will see, and it can act as a warning indicator if your identity is stolen.

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