Purchasing MYP for myself, will be the one paying but Loan will be under wife's name to establish credit

[Triplem086]

Hey All - I'm planning on purchasing a MYP next month for myself, however the loan I will apply for (Third Party Credit Union) will be under my wife's name to help her credit. I will be making all the payments on the car. How Does this work in terms of buying a Tesla Car and operating the Tesla App i.e. Will I still be able to operate everything, do the services under my name, etc. ? simply just want the loan under her name

 

[ZeeMike]

If this is to help her credit, then I assume her credit is bad now and you will probably get worse loan terms if she is the only borrower. Co-sign the loan with her if you have better credit as the average will be better and have the title include you and her. That will still work well for her credit if you pay the car on time and you will both own the car. Not financial advice of course.

 

[Triplem086]

Credit is not bad, shes new to the country. Already pre approved, and co signing is not an option

 

[ShelJW]

I just leased a Kia Niro for my 21 year old daughter, and put the lease in both of our names, to establish credit for her.

I would assume a loan would work the same way... as suggested above, simply put both of your names on the loan.

Good luck!

 

[Triplem086]

I just leased a Kia Niro for my 21 year old daughter, and put the lease in both of our names, to establish credit for her.

I would assume a loan would work the same way... as suggested above, simply put both of your names on the loan.

Good luck!

Maybe I should have clarified that putting my name on the loan or co-signing isn't an option as I will soon be in the process of taking a home loan so trying to keep myself out of an auto loan at the moment

 

[Mateo83]

In your best interested you should probably be co registrant at least. otherwise let her own the the account, finance, insurance, etc.

 

[Triplem086]

In your best interested you should probably be co registrant at least. otherwise let her own the the account, finance, insurance, etc.

makes more sense, thanks. In terms of the Tesla App. and the Primary driver/owner. How does that work, If i order the car under my email will I be the primary user for the Tesla App?

 

[Mateo83]

makes more sense, thanks. In terms of the Tesla App. and the Primary driver/owner. How does that work, If i order the car under my email will I be the primary user for the Tesla App?

I cant answer specifically, Still waiting on delivery. I assume in your main login you can just add drivers. Or she uses the credit card key.

 

[norazi]

makes more sense, thanks. In terms of the Tesla App. and the Primary driver/owner. How does that work, If i order the car under my email will I be the primary user for the Tesla App?

Once you have access to the app-login, you can change your email and change/add users/etc...

 

[whisperingshad]

Weird, I got a Credit union loan under my name and my GF on it too(no effect on rate) and no issues. It has helped her bad credit ALOT in 6 months. She has Tesla app on her phone too, for when she needs to drive etc

 

[acarney]

Maybe I should have clarified that putting my name on the loan or co-signing isn't an option as I will soon be in the process of taking a home loan so trying to keep myself out of an auto loan at the moment

Not financial advice of course, but you might want to think carefully with this. If it appears you have a loan, or are the primary one paying a loan, the issuing bank for your mortgage may still take that into consideration when you apply for a mortgage.

This might be bad advice so I'll welcome others to chip in, but if you have the savings right now, you might actually want to transfer four or five months worth to her account and have her be the one paying the auto loan... just so if the bank looks to see your banking history it doesn't look like a routine amount transferred out of your account every month on or around the same date. They might only want two months of history, but if something gets delayed and you find yourself four or five months from now still working to get into a house they might make you re-submit documents to make sure nothing has changed... then they might see four months of these off the book loan payments...

 

[Corndart]

I'd delay delivery until post mortgage but that's risk averse me. You're on the title but not on the loan? I'd check with the lender first. Non zero chance of this getting pulled into your mortgage evaluation process, and if this puts you on the margin for affordability, is it worth the risk?

 

[Jbiddy]

if loan is under her name. Register car under her name.
Thats it.

 

[Doc Brown]

Maybe I should have clarified that putting my name on the loan or co-signing isn't an option as I will soon be in the process of taking a home loan so trying to keep myself out of an auto loan at the moment

So . . . I’d be careful, as others have said. You’re posting on a public forum that you are buying yourself a car but putting the loan in your wife’s name - and don’t want your own name on the loan because you are going to be applying for a mortgage soon. Not sure that’s on the up-and-up with the lending banks - just make sure whatever you’re doing is in line with the rules on mortgage lending. And, as Forest Gump says, that’s all I have to say about that.

 

[saltsman]

You show your location as Houston. Texas is a community property state which has signifiant bearing on your plan.

Under Texas law, all of the property and earnings of both spouses acquired during the marriage is considered to be community property (property owned together by the spouses). It makes no difference whose income paid for it or whose name is on the title, contract, account or note, as long as it was purchased between the date of marriage and the date of the divorce or death of a spouse.

Going forward, both credit scores will reflect the activity you undertake together in marriage (for better or worse).

In practice, if you are married, the loan company (credit union) will need both SSNs and run both credit scores. In practice, the lowest score of the two spouses will be considered for loan qualification regardless of who's name in on the application. Both names will be always be on a montage and real estate deed and typically will be listed on a vehicle title purchased after a marriage -- even if only one person is listed on the loan. Your credit union may work differently so that is something you need to specifically ask about. At the end of the day, if the loan goes into default, both spouses have liability to pay from any income after the marriage was established (with exception of gifts, inheritance, or a personal injury settlement).

Just a note of caution, if you lived in a Common Law state where property is held individually, your plan as stated above would likely be construed as loan fraud. The person promising to pay is not the person intending to pay. Cosigning the loan would be the preferred method here.

I welcome the comments from others who may have clarity on this subject.

 

[steve in socal]

You show your location as Houston. Texas is a community property state which has signifiant bearing on your plan.

Under Texas law, all of the property and earnings of both spouses acquired during the marriage is considered to be community property (property owned together by the spouses). It makes no difference whose income paid for it or whose name is on the title, contract, account or note, as long as it was purchased between the date of marriage and the date of the divorce or death of a spouse.

Going forward, both credit scores will reflect the activity you undertake together in marriage (for better or worse).

In practice, if you are married, the loan company (credit union) will need both SSNs and run both credit scores. In practice, the lowest score of the two spouses will be considered for loan qualification regardless of who's name in on the application. Both names will be always be on a montage and real estate deed and typically will be listed on a vehicle title purchased after a marriage -- even if only one person is listed on the loan. Your credit union may work differently so that is something you need to specifically ask about. At the end of the day, if the loan goes into default, both spouses have liability to pay from any income after the marriage was established (with exception of gifts, inheritance, or a personal injury settlement).

Just a note of caution, if you lived in a Common Law state where property is held individually, your plan as stated above would likely be construed as loan fraud. The person promising to pay is not the person intending to pay. Cosigning the loan would be the preferred method here.

I welcome the comments from others who may have clarity on this subject.

Spouse only needs to be included in mortgage if the loan is VA or FHA, not for conventional.

Don’t take legal or loan advice from clowns on the internet.

Lol

 

[saltsman]

Clown I may be, but in the great state of Texas, any item purchased after a marriage begins, including vehicles, real estate, or collection of whoopee cushions is jointly owned regardless of who's name in on the loan, title or deed. Here's the statue: FAMILY CODE CHAPTER 3. MARITAL PROPERTY RIGHTS AND LIABILITIES How do you read that differently?

As mentioned, the lender (Credit Union) may require both parties be listed on the loan or not. Since the property is community property, most will require both parties on the note. Even if you can get a loan or bank account with one name listed, both spouses have equal claims to the contents and equal exposure to the debt. Thus why lenders want to see credit scores for both parties.

Absent a prenuptial or postnuptial agreement, both names will appear on the recorded deed at the courthouse and both will need to sign to transfer the property. If divorced, the court will divide the property and assets between the parties, even if OP paid 100% of the note. Texas Community Property and Real Estate

But, yes, don’t take legal or loan advice from clowns on the internet (especially me).

 

[steve in socal]

Clown I may be, but in the great state of Texas, any item purchased after a marriage begins, including vehicles, real estate, or collection of whoopee cushions is jointly owned regardless of who's name in on the loan, title or deed. Here's the statue: FAMILY CODE CHAPTER 3. MARITAL PROPERTY RIGHTS AND LIABILITIES How do you read that differently?

As mentioned, the lender (Credit Union) may require both parties be listed on the loan or not. Since the property is community property, most will require both parties on the note. Even if you can get a loan or bank account with one name listed, both spouses have equal claims to the contents and equal exposure to the debt. Thus why lenders want to see credit scores for both parties.

Absent a prenuptial or postnuptial agreement, both names will appear on the recorded deed at the courthouse and both will need to sign to transfer the property. If divorced, the court will divide the property and assets between the parties, even if OP paid 100% of the note. Texas Community Property and Real Estate

But, yes, don’t take legal or loan advice from clowns on the internet (especially me).

I guess I should clarify. Firstly, your reading of the law is correct and you are a very smart and eloquent fellow. Your comments regarding the law for community property states is accurate but your mortgage related assumptions about spousal requirements and bank underwriting processes are not generally correct (although your statements are logical).

I made my statement in the prior post based on my own personal experience and according to various lenders’ public statements. So I guess I should quote a national lender on this point

“The following rules concerning debt and credit only apply in the case of FHA and VA loans. If you get your loan through Fannie Mae or Freddie Mac, those loans follow traditional guidelines and the debt and credit of your non-borrowing spouse isn’t factored into the loan.”

Fannie and Freddie currently buy 70%+ of all mortgages originated in the US so banks will underwrite to their standards.

Cheers and kind regards

 

[thesmokingman]

Why not keep it simple and get her a credit card and pay it off regularly to build credit? Getting a car is kind of over the top and the most difficult thing (next to a home) to try and buy with bad credit.

And as far as the car, the app doesn't care whose using it as long as you have the user/pw to access the Tesla account.