Married Applying Singly

• When one half of a married couple has a less than stellar credit history, it may be best if the spouse with good credit applies for any large loans such as a mortgage. If the spouse who has not filed bankruptcy has a steady income, and the home is not too expensive (and therefore within the bounds of the lender's ideal debt-to-income ratio), excluding the spouse who filed bankruptcy from the loan will increase the chances of getting the loan approved and getting a good interest rate and other terms.
  
  

Extra Insurance Needed

• Just because only one spouse gets the mortgage doesn't mean that the home must be deeded to the mortgage holder alone. Both spouses' names can appear on the deed, but doing so may mean getting either mortgage or life insurance for the mortgage to satisfy the lender, who wants to know that the mortgage will be paid off in case of the death of the mortgage holder. When the surviving spouse has a checkered financial past, lenders may suggest or require insurance before writing a mortgage for the other spouse.
  
  

Two Incomes are Better Than One

• The more income a married couple can provide toward a mortgage, the more likely lenders are to extend credit. For that reason, it's best to have both spouses financially viable before applying for a mortgage. Even with a bankruptcy in one spouse's past, it's possible to rebuild that spouse's credit enough that even a mortgage lender will extend you credit as a couple, especially if the spouse who did not file has excellent credit.
  
  

Rebuilding Credit

• Plan to spend at least two years, if not a couple more, rebuilding your credit after a bankruptcy to prepare for the mortgage process. The spouse who filed bankruptcy should get a secured credit card, begin making small, regular purchases, and pay the card off in full each month to re-establish credit. Both spouses should pay every bill on time and pay down debt during the two years before seeking a mortgage. If possible, be free of any unsecured debt such as credit cards or medical bills before applying for a mortgage. Paying debt on time and paying it off will make you an attractive risk for mortgage lenders.