Mortgage When My Spouse Has Bad Credit

I am married, have a good credit score, and my spouse has bad credit. Can I apply for a mortgage on my own?

I have been married for about one year and we want to buy a condo, but my spouse has bad credit that will hold us back on a good loan. My credit is good. Can I apply for a loan on my own, for the purpose of buying a house as a married person? I would need to borrow about $250,000. I am a teacher (15 years).

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Bill's Answer
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Highlights


  • Review how to apply for a mortgage when your spouse has bad credit.
  • Understand how debt to income ratio affects qualifying for a mortgage.
  • Examine how a credit score is determined.

The quick answer is: Yes! You need not apply for a joint mortgage with your spouse.

Generally speaking, if you and your spouse apply for a loan jointly, the lender will look at your combined income, combined debt-to-income (DTI),and both of your credit scores. If your spouse does not have income, or you do not need his or her income to qualify, then you may apply for a loan without him or her.

Banks want four things in a perfect borrower:

  1. Stable income — 2 years or more
  2. Attractive credit history — a high credit score and few mishaps
  3. Low debt-to-income ratio — the less debt you have the better
  4. A down payment — a minimum of 3.5%, but more is better

If a potential borrower lacks in any one (or more) of these, the potential borrower find qualifying for a loan difficult.

Work with a broker and see what mortgages you qualify for. Download a Uniform Residential Loan Application (Form 1003), complete it using only your income and credit. Then, complete a second Form 1003 with both your income and the income of your spouse. Finally, start shopping. Get mortgage quotes from up to four pre-screened lenders from Bills.com.

Reasons to Apply for a Joint Mortgage

If your low-credit-score spouse makes a high income, there is a chance his or her income would improve your DTI ratio and thus increase your likelihood of obtaining a loan despite the low credit score.

Some spouses feel more secure in a property where their name is on the lease or mortgage. When both spouses are on a mortgage and one spouse dies, the other can assume the mortgage and depending on how the property is titled, the surviving spouse will have 100% ownership of the property without it going through the probate process.

There are legal tools available that bring a non-signatory spouse to the same place legally. Regarding the death of the mortgaged spouse, the ownership of the property can be handled with a will or trust. Life insurance can pay the mortgage if the signatory spouse dies.

Reasons to Not Apply for a Joint Mortgage

However, if you apply for a mortgage on your own, you solely carry the burden of that mortgage obligation. If you default you alone have liability. This can be a positive or negative depending on your perspective. Let us assume your spouse rebuilds his or her credit score. Let us assume you and your spouse encounter unexpected financial difficulty, and become delinquent on the mortgage, or allow a foreclosure. Your credit score will take the fall, while your spouse becomes a credit score lifeboat that allows you two to continue to find credit.

Or let us assume an equally dire circumstance where you and your spouse decide to divorce. Usually one spouse will want to stay the marital property. In that case, there is is a 50-50 chance the spouse who has the property in his or her name alone will keep the status quo on the mortgage and title. If the mortgage is jointly held there is a 100% chance the mortgage will need to be refinanced to remove the non-occupying ex-spouse from the mortgage. For these two reasons I recommend that if spouses, partners, friends, or family members who wish to occupy a house together can afford to do so they put the property in one person’s name only.

Recommendation

First, a competent mortgage loan officer will explain how to qualify for a mortgage. A great loan officer will help you find the best loan for your needs. Visit the Bills.com mortgage savings center to get no-cost quotes from up to five pre-screened lenders.

Second, if you have a high credit score and your spouse does not, do not to add yourself to your spouse’s credit cards. Add your spouse to your cards as an authorized user, which will help pull their credit score up. The spouse with poor credit should pay off any delinquent cards or accounts as quickly as possible and negotiate a pay for delete to remove these harmful accounts from their credit report.

Third, it might be important to understand how a credit score is calculated. A credit rating is based on several variables, including:

  • Payment history (do you have any late payments, charge-offs, etc.)
  • The amount and type of debt owed
  • Any maxed-out trade lines
  • Several secondary factors including length of credit history and how many recent inquiries have been made on a credit history.

Paying down maxed-out trade-lines will almost always boost a credit score. If you would like more information, please visit the Bills.com credit resource page.

Finally, spend a few minutes to learn if a no-cost mortgage is right for your situation.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

238 Comments

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  • 35x35
    Mar, 2013
    M
    I am not currently on our mortgage or deed. My credit is much better than my husbands. If I go on the deed, will this damage my credit? We are underwater as well. Can I refinance myself?
    0 Votes

    • 35x35
      Mar, 2013
      Bill
      Allow a brief digression to define several terms before we tackle your question. A deed is a document used to convey real property from one person to another. The name on a title determines who owns the property. If, for example, Oscar wants to sell his property to Bob, Oscar will give Bob either a quitclaim or warranty deed to his property, which Bob will then bring to the county recorder's office so that the owner's name on the property's title can be updated. On to your questions.

      It is unlikely your spouse using a deed to add you as a concurrent or sole owner of his real property will change your credit score. It is unlikely either conveyance will appear on your credit report.

      Let us say your spouse adds you as a concurrent owner, or conveys the property to you entirely. Doing so does not change your spouse's liability for the loan. Nor does it make you a co-borrower on the existing loan. Therefore, you would not, from legal or financial perspectives, be refinancing the loan to add you as a borrower or co-borrower. You would be qualifying for a home loan from scratch. This is neither good nor bad, nor is my explanation here meant to discourage you from contacting HARP lenders to learn what rates and terms you qualify for. If you yourself qualify for a HARP loan, be prepared to consult with a lawyer about filing a quitclaim deed to convey the property from your spouse to you.
      0 Votes

  • 35x35
    Apr, 2012
    Melissa
    My husband and I are planning on applying for a VA guaranteed home loan as he qualifies and we don't have a large amount for a down payment. His credit score is terrible, 606, due to defaulting on student loans a few years back. (All of which are now paid and closed). My score is much better at 797. However, I am a stay-at-home mom and have no income. It is my understanding that my score will not come into play since the lender will only take the lower into consideration. Are we SOL unless he somehow gets his score up? Or do we have options? For what it's worth, we have zero debt. Thank you in advance.
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      I recommend that you speak with a loan officer. His 606 credit score is not good, but it is not quite in the terrible range. Your strong score will not help the loan application, due to your current lack of income. The fact that you have zero debt helps your debt-to-income ratio, which strengthens the application. If his loans are still in default or in collections, that could be a barrier to qualifying.

      A quality loan officer will let you know if you qualify or what needs to be changed, in order to be approved. You can get a free, no obligation mortgage quote for a VA loan.
      1 Votes

  • 35x35
    Apr, 2012
    Dave
    BTW I should add, the major improvement to her score was from fixing the alleged late payment from a few years back, which no one recommended I try to do (it was just something I thought up and did on my own). I would recommend to anyone going that route to dispute with the original bank FIRST, before trying to dispute with the credit reporting agencies, because if they re-affirm you can get stuck with your dispute being called "frivolous" and then it's harder to fix if you address it with the bank later.
    0 Votes

    • 35x35
      Jun, 2012
      Brian
      You may have already got what you need but if you have not go to this website https://www.optoutprescreen.com, it bumps your score 10 to 15 points. You opt out of receiving credit card offers for 5 years and you can reverse it any time.
      0 Votes

  • 35x35
    Apr, 2012
    Dave
    Reporting back... I was able to get my wife up over 750 and we moved in last week. It was a bit tricky: I had to call the bank that originally made the billing error and get them to change their record (the hard part was finding the phone number, a 30-second conversation got it fixed) then because they had previously affirmed the record, one of the reporting agencies labelled the dispute "frivolous" and refused to re-check it, until my lender went through the whole "rapid rescore" process. The lender also recommended she pay off a $12 credit card balance, but finally her score came back good enough for their best rate. FYI the rules were changed in 2008, adding her to my credit card apparently doesn't do much of anything anymore.
    0 Votes

  • 35x35
    Apr, 2012
    Donna
    My husband just received his residency in July of 2011. He makes approx. 45k a year, and has a joint credit card with me. Everytime we request a credit score they say that because he has only been here since July they don't have any information. I am currently a stay at home mother and do not have an income but my fico is about 660-670. I currently have one loan that I pay about 100 a month on for the next 2 years. Is there anything we can do to purchase a home with the credit issue that my husband is having?
    0 Votes

    • 35x35
      Apr, 2012
      Bill
      Try to apply for a joint mortgage. Consider an FHA loan. Follow the page I just mentioned to learn more about FHA loans, and how to apply for an FHA loan.
      0 Votes

    • 35x35
      Jun, 2012
      Brian
      I have only been in the country for just over 3 years and i had the same problem up until a few months ago. I had to get high interest credit cards and make the payments on time for 2 years before my score get high.
      0 Votes

  • 35x35
    Mar, 2012
    S
    I just want to make sure that my husband can apply for an FHA loan by himself. I have a great credit score but my DTI is not good. My husband on the other hand has a great DTI. He makes about $21,000 a year and only has a personal credit line that he is paying on which is $50 a mth. What would he say to the loan officer about not wanting me on the loan?
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      One or both spouses may apply for a home loan, whether it be an FHA-compliant or conventional loan. I recommend if one spouse qualifies alone, then he or she should be the one and only applicant.

      As the article above explains, mortgage lenders look for these qualities in an applicant:
      • Stable income history (usually two or more years in the same field)
      • Strong credit history (what is the applicant's credit score?)
      • Low DTI
      • A down payment (plus some in reserve, too)

      A spouse need not apply jointly for a home loan. In fact, the last two homes my spouse and I purchased we did so without the other applying jointly. One spouse applying for a home loan without the other is common.

      Your spouse should tell the loan officer, "I am married, and I want to apply for this loan alone." The loan officer will proceed accordingly.

      0 Votes

  • 35x35
    Mar, 2012
    Mama
    Hi Bill, I have a stable job, good income, high credit score, little debts and ny husband and I keep our finances separate. Would I be able to qualify for a conventional loan with a 10% down payment if I meet the DTI's without the lender looking at my husband's credit and debt? He is currently trying to short sale his home that was purchased before we got married. Thank you.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      There seems to be an urban myth that states both spouses must apply for a home loan. This myth is untrue. One or both spouses may apply for a home loan. I recommend if one spouse qualifies alone, then he or she should be the one and only applicant.

      In one state I am aware of — Wisconsin — some lenders insist on both spouses applying, but that is a policy and not a state law.
      0 Votes

    • 35x35
      Apr, 2012
      Mama
      I am just worried that when the underwriter/lender looks at the form 4056 transcripts, he will see my husband's mortgage interest on our joint taxes.
      0 Votes

    • 35x35
      Apr, 2012
      Bill
      Talk to your broker about this situation. I may be too cavalier in my assessing this issue, and an underwriter might see the spouse's short sale as liability for you. Look at it this way. If you apply and it is not an issue, then your worries were for naught. But if this is a liability that scuttles a deal, then you were correct. If you do not apply, then it is a certainty you will not receive funding for a loan.
      0 Votes

  • 35x35
    Mar, 2012
    Greg
    Hello! I am currently in the army. salary is 55k/year and fico score of 647. Wifes income is 12k/year with fico score of 550. I will be getting out of the army in 1.5 years and need to buy a house. When i am out of the army my income will only be about 16k/year and my wifes income will be around 35k/year. Will I be able to get a mortgage without her on it with income of only 16k? or should I try to buy before I get out of the army when I still have my income?
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      Consider a VA Loan. This may address all of your challenges to qualifying for a home loan.
      0 Votes

  • 35x35
    Mar, 2012
    Nicole
    Hi, I'm trying to buy a house, but my spouse has an eviction notice on his record. Will this issue deny me of buying a home? Should I not put his name on the application? I know 2 incomes are better then one when it comes to buying a home! Help!
    1 Votes

    • 35x35
      Mar, 2012
      Bill
      In general, I recommend if a spouse qualifies for a home loan alone, he or she should apply alone. One person on a mortgage is always easier to deal with if misfortune should befall the couple in the future.

      The answer to your question depends on how long ago the derogatory event occurred, and if there is a reasonable explanation for the eviction. If the event was long ago, or the eviction was not a result of your spouse's inability to manage money, then this event will carry less weight.
      0 Votes

  • 35x35
    Mar, 2012
    Renee
    Hi, A couple of weeks ago I got pre qualified for a new home. Then my credit score was a 735. Now I have two hospital bills that showed up on there worth a total of $295 so I paid them but it dropped my credit score to a 585. My credit to debt ratio is pretty flawless 98% credit to 2% debt. Will I be able to still get a loan based on this or do I have to sit back and wait another 2 or 3 years till my credit score improves. I am getting stressed thinking about this. Any answers would be greatly appreciated.
    0 Votes

    • 35x35
      Mar, 2012
      Bill
      See the Bills.com articles Delinquency, Debt Settlement & Credit Scores and Short Sale, Foreclosure & Your Credit Score to learn how certain events harm a credit score, and how long it takes a score to recover.

      Whether you qualify for a loan depends on the type of loan and the lender's underwriting standards. Also, if you can show that the derogatory was one-time event due to a billing error, the underwriter may be allowed to overlook the credit score shortfall.

      I write the following for the benefit of other readers: Renee's situation is a perfect example of when to use a pay for delete.
      0 Votes

  • 35x35
    Feb, 2012
    Dave
    Hello, my credit scores are 770-800, my wife was around 670-700 last we checked. She had one late payment a couple years ago on the first payment to a store credit card due to a billing address error, which we have since disputed. She has only been in the country for about 5 years and therefore doesn't have much history, so today I added her to my credit card (>7 years of history, always paid on time, never carried balance). We are buying a home, and we may want to close on it before close on our current home. Adding her solves the DTI problem of paying two mortgages, but she needs 740+ to keep us in the best rate. Two questions: 1) how soon will the change to her score from adding her to my card show up on lender's credit report, and 2) will this probably be enough to push her up to 740+?
    1 Votes

    • 35x35
      Feb, 2012
      Bill
      Dave, I can't say how much of a boost that your wife will see from the steps you are taking. My gut feeling is that adding her to one credit card will not be enough to get the increase you seek, but I could be wrong.

      My best advice is to rely on your loan officer. See if a rapid rescore is possible. With a rapid rescore, you should both be able to find out what steps you can take to boost her score, if any are available, and get it done quickly.

      Please report back on how things go for you.
      0 Votes

  • 35x35
    Feb, 2012
    Jenny
    My and my boyfriend are relocating to CA in a few weeks, all the rental homes that we have found are demanding we both fill out a credit check, even though hes the only one who will have an income at first, we are not married yet and I have bad credit, we just want to live together still, I do not want to get us disqualified from a home with my credit check, what can we do?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      I recently spoke with a few rental agents in CA. All of them told me that the credit for the person with the strongest credit will be used to determine whether or not a rental agreement will be approved. Therefore, I believe that you will be able to find a place together, if his credit and income are sufficient to meet the landlord's requirements.
      0 Votes

  • 35x35
    Jan, 2012
    Roger
    Can I qualify for a mortgage without recent rent or mortgage history due the home I live in is under my spouses's name and is going through modification or poss foreclosure?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      Difficult to answer your question without knowing more about your existing debts, income, credit score, and job history. See the Bills.com resources Qualifying For a Mortgage and FHA Loan Requirements to learn more about qualifying for a home loan.
      0 Votes

    • 35x35
      Feb, 2012
      Roger
      I make 135k a year and been in my current job for over 2 years and same field over 20 years, credit score is 620 with positive credit last 5 years and income to debt about 20% but no rental history. Home is in spouses name and going through a modification or poss foreclosure.Can I qualify for a mortgage in my name without spouse. I am in Florida.
      0 Votes

    • 35x35
      Feb, 2012
      Bill
      See the Bills.com Mortgage Affordability Calculator page to learn if you qualify for a mortgage. Also, read the Bills.com FHA Loan Requirements page to learn more about this program.
      0 Votes

  • 35x35
    Jan, 2012
    Ken
    Hello, I'm currently in the process of buying a home with my fiance. My credit is bad, so we used my fiance's credit score to apply for an FHA loan. She got pre-approved for 150,000 a few months ago. Now, we're a few weeks away from the tentative closing date (we found a house back in December) and our loan officer just informed us that the lender denied us the loan due to her DTI ratio. My question is, is there anyway for the lender to take into account my income as well when determining this? I make more money than my fiance, and we've already done the calculations on our own and we would be more than capable of covering expenses and the mortgage with both of our incomes. It's a bit deflating to get this far and find out this information... especially when I can afford the mortgage based off of my salary alone.
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      If your income is used to qualify for the loan, then your credit is going to be assessed. FHA credit requirements are less stringent than for a conventional loan. I think all you can do is to speak to your fiancee's loan officer, have him or her view your credit, and see if you can be added to the application. If you can't and therefore you can't get a large enough loan to buy the house that you want, you either have to improve your credit score to the point that you qualify or put more money down (and meet any seasoning requirements to have the money in her name) so that she can borrow enough to make the purchase.
      0 Votes

  • 35x35
    Jan, 2012
    Karen
    Has it always been against banking laws to use one person's credit with only his/her spouse's income to obtain a mortgage? If not, when did that banking law begin? I am asking about a mortgage that has only ONE person's name on it. Thanks for your response.
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      It is possible to take a mortgage loan on the name of one borrower. The lender will generally use only the credit and income information of the borrower.

      The FHA requires, in cases of community property states, that the non-purchasing spouse provide information about their income and debts, as well as provide an accurate credit report. For more information about a FHA loan see the Bills.com article FHA loans.
      0 Votes

  • 35x35
    Jan, 2012
    Anthony
    Question, my wife's credit is outstanding, and my credit is below 600. I make more money then my wife and she is worried that there is no way to get approved with my low credit score, but needs my income to make it more attractive to the bank. is there a way that she applies for the mortgage on her own and my name goes on the deed? or shows that i make payments to her every month to bump up her monthly income? We are looking in NJ. Thanks
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      If you want your income included, then you have to be on the loan application. I suggest that you look into an FHA loan. FHA loans have less strict credit requirements than conventional loans.

      Speak with a loan officer. If you don't qualify, then ask the loan officer what credit score you need in order to qualify, and take the right steps to improve your credit score, if necessary. It may delay your purchase for a number of months, while you work to improve your score, but there is no way around that, if your income is needed to meet the lender's debt-to-income requirements.
      1 Votes

  • 35x35
    Jan, 2012
    W
    My boyfriend and I are looking to buy our first home. I have good credit and very little income and he has not so good credit and brings in the income. So my question is, will we be able to get a loan?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Maybe. Reread the original answer above to learn more about a joint mortgage loan application.
      0 Votes

  • 35x35
    Dec, 2011
    Amy
    My boyfriend and I are first time home buyers, and we're looking at buying a house in California before getting married. He happens to have a great credit score (B), while I have a pretty poor credit score (D). I actually make a higher income than him though, so we're wondering two things: 1. Should we put both our names on the mortgage loan to qualify for a low interest rate? 2. Are there any major differences in getting a joint-loan together if we're not married? Would it be more beneficial to sign the loan after we're married? Thanks!
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      If you purchase the property in one person's name, before the marriage, then you should speak to a lawyer regarding, so that it is clear how you divide the ownership of the property.

      It is impossible to know what kind of loan you will be able to take, and at which rates. Your poor credit score may bar you from a conventional loan, or leave you with fewer mortgage loan alternatives. An FHA loan is one alternative for people with bad credit. Given your income, the first step should be to see if you can qualify together, especially because your boyfriend may not have enough income to qualify by himself, due to an inadequate debt to income ratio. I recommend that you take the following steps:
      1. Repair your credit.
      2. Get a mortgage loan quote today.
      0 Votes

  • 35x35
    Dec, 2011
    Justin
    I am buying a home through a VA loan, my wife is in the middle of Bankruptcy, and will not be on the loan. Her BK will be final AFTER my escrow closes. I just got papers in the mail about deeding the property and it talked about major financial tax liabilities based on how I title the property. Do I add her, or can I even add her since her name is not on the loan? Will it cause any issues during her BK? I live in CA. Please help me know what to do so she can still have the home if I die.
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      You should speak to an estate planning lawyer, to make sure that your goals are achieved. Adding her to the title could be problematic for her BK, as it would increase her assets. Leaving her the home in your will, as well as having adequate life insurance to allow her to afford to pay off the mortgage balance are things you should consider.

      At the same time, she should speak with her BK lawyer, to get his or her opinion on what she should do and not do, to make sure her BK goes through and no problems arise.
      0 Votes

  • 35x35
    Dec, 2011
    Kathy
    My credit scores between 660 & 704. My ex-husband has not refinanced the home we had that I gave up in our divorce so it still shows up on my credit. He makes the payments on time so I do not worry about that. My DTI is ridiculous though because this 150,000 debt is there. Will my credit score change when he refinances? My fiance and I are going to be using his VA home loan to purchase a new home and are holding off getting married because of this debt.
    1 Votes

    • 35x35
      Dec, 2011
      Bill
      You addressed two different issues:
      1. Credit Score: Since the payments are being made on time, your credit score has not been negatively impacted by the current mortgage. Even if your ex refinances, the old loan will still show on your credit report and its positive history will help your score.
      2. DTI: Taking your name off the loan will decrease the amount of debt you have, including the monthly payment. Consult with your lawyer and learn what actions can be taken to induce your ex-husband to refinance as soon as possible. As long as you are on the loan, then you will be responsible for the repayment of the loan. If you are looking to a purchase a home and are concerned about the loan's effect on your DTI, it may be possible to have the current loan payment excluded from your DTI by providing the underwriter with proof your ex is responsibly making payments on his own.
      0 Votes

  • 35x35
    Dec, 2011
    Xavier
    I have a major QUESTION and wonder if someone has had the same situation or could provide some advise (don't worry. will not sue. I understand nothing on this blog constitutes as legal advice, etc, etc). My wife and I plan to buy a property thinking of our newly born baby boy. My credit sucks and my wife has almost perfect credit. We plan to use her credit to secure a mortgage loan. We will go for an FHA loan. Our lawyer (or should I say my wife's lawyer) has informed her that my name will appear on the deed. However, I have a JUDGEMENT in my name from a property I purchased long ago. The bank has a lien on the property I bought and is waiting for the shortsale to settle to clear out this mess. I am extremely worried about my name being on this new property because of this JUDGEMENT! Can I avoid having my name appear on the deed. Will the bank who has this judgement? This sickens me to the point where I can't sleep at night thinking of this mess. We have a home under contract and my wife is just waiting for final Go on the mortgage. PLEASE ADVISE!!!!!
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      I am not sure why your name will appear on the deed. If the purchase is to be made jointly, then your name will appear on the deed, and you will be required to be a co-borrower. Check again with your wife's lawyer, and verify as to exactly why your name is being put on the deed, and when it will be placed. Explain to him that your wife is taking the mortgage out on her name only, and the purchase should be done accordingly.

      I assume that you are going for a FHA loan, due to the amount of down payment required. However, you should know that FHA loans, if you reside in or purchasing property in a community property state, unlike conventional loans, require information about your debts to calculate the DTI ratio, even if you will not be a party to the loan. I recommend that, before the purchase, your wife check out Bills.com's Quick Mortgage Quote.
      0 Votes

  • 35x35
    Dec, 2011
    Courtney
    My husband and I reside in Nevada (community property state). The home we used to live in was only in his name and was foreclosed on in June 2011. My credit it decent and I make approximately $70k/yr with little debt. My husband carries all the major debt in just his name. Can I qualify on my own without having to list all of his debts? I have a car loan on my credit and he has one on his. I believe if I have to "absorb" his debts with just my income, I won't be able to purchase :(. Any advice is welcomed! Thanks!!
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      When applying for a conventional loan, you should not be required to provide information regarding your husband's credit or debts.

      As regards a FHA loan, since you live in Nevada, a community property state, then you will be required to provide that information.

      I recommend you get a mortgage loan quote now.
      0 Votes

  • 35x35
    Dec, 2011
    Michelle
    I lost a business and had to file bankruptcy. It was discharged over 2 years ago. I am looking to purchase a home in April of 2012. I checked my credit score and Transunion was at 742, Experian at 741 and Equifax at 687. One of my creditors does not report to Equifax so it's pulling my score down. I make over $77k and my DTI ratio is 27% and have not been late on 1 payment. Do you think I will be able to qualify for a mortgage at a decent interest rate?
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      Congratulations on building up your credit score. Remember that a DTI, including your mortgage payment (principal, interest, taxes, and insurance), should no be more than 45% of your gross income.

      To get the best interest rates available in the market, historically, you need to qualify for a conventional loan, for example, one that is bought by Fannie Mae. Your ability to qualify will primarily depend on the type of bankruptcy and the amount of time that has elapsed since the bankruptcy. Fannie Mae's underwriting guidelines from June 2008, allow eligibility two years after a Chapter 13 bankruptcy dismissal. Any other type of bankruptcy requires a 4 year period and multiple bankruptcy can take up to 7 years.

      I suggest that you look into an FHA loan, as you can qualify for an FHA loan 24 months after a Chapter 7 bankruptcy has been discharged.
      0 Votes

  • 35x35
    Nov, 2011
    Eric
    I currently make more than 90k, however my credit scores are in the mid 600s with a pretty high DTI ratio? My spouses makes about 25k a year, my question is can we apply for a loan with my income under her credit? Thanks in advance.
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      If both spouse's are on a mortgage application, then the income, credit history, and credit score will be viewed. The lender will also take into account the total household DTI.

      I recommend that you look into FHA loans as a primary option. FHA loans have less strict credit requirements than conventional loans.
      0 Votes

  • 35x35
    Nov, 2011
    Annie
    My husband was pre-approved for an FHA loan by himself since I have a poor credit score. We were going through escrow & our loan was denied by the underwriter based on my credit. Our loan officer said that she had never seen that happen because it's against the guidelines to base a denial on a spouses credit if they are not going to be on the loan. Have you heard of this happening before?
    1 Votes

    • 35x35
      Nov, 2011
      Bill
      The loan officer is correct. See HUD's guidelines, as they appear on its Web site:

      Although the non-purchasing spouse's credit history is not to be considered a reason for denial, it must be obtained in order to determine the debt-to-income ratios of the borrower. If there is an indication or discrepancy regarding the non-purchasing spouse's social security number or credit status, the lender remains responsible to exhaust all possible means to resolve the issue through direct contact with the Social Security Administration, a service provider with direct access to the Social Security Administration and/or the credit report agency.

      For other questions, call HUD's offices at (800) 569-4287. Review your rights on HUD's "RESPA Borrowers' Rights".

      0 Votes

  • 35x35
    Nov, 2011
    Federico
    i have a credit score of 724,no debt or anything. Stable job too, my spouse recently finish with her bankruptcy. can we both apply for a mortgage or is it better off if i am only in it?
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      A lender will generally not offer a loan until 2-5 years after the completion of a bankruptcy. Your wife should work on building up her credit during this time.

      I recommend you apply for a loan in your name.
      0 Votes

  • 35x35
    Nov, 2011
    Lee
    Hi Bill, I have a stable job, good income, good credit, little debts and I've been pre-approved for a conventional Home loan with a 5% down under my name only. My wife has foreclosed on her house which is only on her name and has also filed for Chapter 13 bankruptcy. Since we live in California a community property state, will her bankruptcy/foreclosure affect my chance of getting a full approval once my loan gets submitted to the underwriters? Please advise. Thank you,
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      Your wife's status will not affect your application. The underwriters will not require documentation from your wife.

      Monitor your credit report to verify that it is in good standing and that no court judgements have been made against you.
      0 Votes

  • 35x35
    Nov, 2011
    Saha
    Hi My husband earns 67 k with credit score around 625 and we have no debts as we recently cleared them . How much do we qualify for ? thanks
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      I can't say that you qualify for a loan or not. I don't know what your husband's credit report looks like. His score is only fair and there could be late payments that disqualify him.

      Separately, his debt-to-income ratio is very important. Lenders will examine not just his income, but what he pays each month to service certain debts.<

      A third factor is the size of the down payment you make.

      I suggest that you and he speak with a loan officer and focus on FHA loans.
      0 Votes

  • 35x35
    Nov, 2011
    James
    I am a veteran wanting to use the first time home buyer program for a VA loan. I moved out of rental property and in with my wife when we got married (she bought this house before we were married). I am currently in school and not working (for another 2 years). We would have to use her income to apply for a loan. Will they consider her home since it will have to be her income on the application? Is there a way around this situation?
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      I suggest that you speak with a lender that offers VA loans. I think that as long as you have VA eligibility, then you can apply for a loan with your wife. If you have a credit issue that bars you from qualifying or if you carry enough debt that makes your wife's income not meet debt-to-income requirements, then the two of you won't qualify.

      You need to be on title, as the veteran, to get the VA loan.
      0 Votes

    • 35x35
      Nov, 2011
      James
      Thank you for your response. Her home is upside down. We both have student loans, her's we are currently paying, while mine are still growing. She has something like 40K in stu loans. The confusing part for me is what they consider income. I receive GI Bill money, she has work income, and child support from her ex. With everything together we do fine, but if you only consider her 52k work income I'm not sure. Is there anything you can say about this?
      0 Votes

    • 35x35
      Nov, 2011
      Bill
      I am not sure whether the GI bill money will count as income on a loan application. I think it depends, at least in part, on how long you are entitled to receive the money. If it is a lifetime award, I believe it will count, but if it is a short-term award, it would not count.

      Her child support income needs to be received consistently, in order for it be counted as qualifying income. She may need to supply a proof of her history of receiving timely payments, too.

      I still feel the best course is to speak with a knowledgeable loan officer. He or she will let you know if you qualify now and what size loan you can get or what you need to do in order to position yourself for successful qualification.
      0 Votes

  • 35x35
    Nov, 2011
    Angela
    I currently own a home that is under water, the loan is an arm that we didn't get out of in time, therefore we are attempting to short sale or, worse case scenario, foreclose. My husband's name is not on the mortgage, only mine. Considering everything going on with the house my credit is going to be shot for some time. His credit is in the mid-600's and we are going to attempt to buy another home in his name. He makes $60,000 a year which won't qualify us for too much in this area. Can my income be considered "Household income" even though I won't be on the mortgage? I make 98K a year and that would help lift what is considered "affordable".
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      Unfortunately, your income will not be used, if you are not a co-borrower on the loan. If your spouse can't qualify for a loan on his own that is large enough to buy a house you want, the best option is to try to save up as much money as you can to put towards a down payment. This will reduce the size of the loan you need to purchase the home.
      0 Votes

  • 35x35
    Oct, 2011
    Jara
    My husband is trying to get a VA loan. We got approved using just him on the loan (he's in the military) however, the bank that he got approved thru is out of state. When we started looking at houses and putting in offers most of them want "local" lenders so we went local. Now that we went local they are trying to include me. I have a tax lien that's not satisfied and now the new lender won't accept us. I have told them 100 times that they don't need me on the loan b/c my husband has sufficient income and was already accept without me, but the local lender won't approve the loan without putting my debt in it, which doesn't even let us qualify. My question is, is the local lender wrong in adding me in? The out of state lender didn't even ask anything about me. The local lender had to have my credit report and everything even though i wasn't on the loan. We are so disappointed because now we can't get a house :( Any comments or information would be great. Thanks!
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      If the property is located in a community property state, then the VA requires consideration of the your credit, regardless of whether you will be personally liable on the note and whether you or your spouse choose to have your income considered.

      If your spouse wants to obtain the loan in his name only, he can do so without any regard to your credit, as long as you are in a non-community property state.

      The community property states are:
      • Alaska
      • Arizona
      • California
      • Idaho
      • Louisiana
      • Nevada
      • New Mexico
      • Texas
      • Washington
      • Wisconsin

      Check with another lender if you live in any non-community property state.

      0 Votes

  • 35x35
    Oct, 2011
    Brodie
    I have a credit rating of 535 whereas my wife's is 625. She makes about $20,000 a year. I am currently unemployed and most likely won't be able to find a job until next spring since we live in a tourist town and everything is closing down for the winter. We are considering having my wife apply for an FHA loan to buy a foreclosed house, and using our tax return money in the spring to pay the down payment. When applying for the loan, would they take in to consideration that our payments on the loan would be about $200 a month cheaper than what we currently pay in rent?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      The lender will definitely take into consideration the size of your new mortgage payment, when determining your debt-to-income ratio (DTI). However, just because your new mortgage payment is $200 less than your rent, which you have paid responsibly, does not mean that you meet the FHA loan requirements for DTI.

      FHA loans require that your new monthly costs for your mortgage payment, property taxes, and homeowner's insurance are not greater than 29% of your gross monthly income. When you add in your monthly required payments to other creditors (such as your vehicle payments, monthly minimum credit card payments, student loans, etc.), your DTI cannot exceed 41% of your gross income.
      0 Votes

  • 35x35
    Oct, 2011
    beto
    I have been in my home for 7 yrs. Got it when prices were high. Got a arm loan. 2 yrs ago got modifided to a fix. Income has got smaller and credit card went to colections. Wife is not on mortgage. I want to leave house. Can my wife get a loan using my income or not.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      I am not certain I understand your circumstances and question completely, but if you are asking if a spouse can use the other spouse's income to qualify for a mortgage or a mortgage refinance, the answer is yes.
      0 Votes

  • 35x35
    Oct, 2011
    Jane
    My fiance and I are looking to purchase a home. We both have stable jobs. He makes 50k I make 35k. He has an 800+ score, I am somewhere in the low 600's. I have had some collections in the past that I recently payed off in full. Do you think we can get approved for a home loan? If so, how much would be expected to get approved for? Thanks!
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      What it takes to qualify for a mortgage and the size loan you can obtain depends on more than your income and credit scores. Lenders look at your debt-to-income ratio (DTI), reviewing the debts you have to pay each month in comparison to your income.

      The size of your down payment is also an important factor if you are looking to buy a home.

      I recommend that you speak with loan officer, to see what kind of loan you may qualify for today and what you may need to change if you don't qualify right now. Look into FHA loans, as a starting place, as they require only a 3.5% down payment and the credit requirements for FHA loans are less strict than for conventional loans.

      You can speak with one of Bills.com's pre-screened mortgage partners, to get things rolling.
      0 Votes

  • 35x35
    Oct, 2011
    Marissa
    My fiance and I recently became engaged, and we are thinking of possibly buying our first home. I make $63k a year, but my credit score is significantly low (550-600)and I am attempting to rebuild it. He however, makes $93k a year, but has no credit seeing as he never took out any loans for school and no bank will qualify him for a credit card since he has no credit established. We have over $100k saved up for a down payment. If he does end up qualifying for a credit card, how long does he need to have it his credit established before we can even start the process?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      I don't have a definitive answer for you, but I think it will take a year or two to establish and build credit for a conventional loan.

      However, there may be a way to work around this. Where does he keep his substantial savings? If it is at a small, local bank, there may be more flexibility. Perhaps proof of timely rent, utility, and other bills, along with a large down payment will make a home loan a possibility.

      Speak with a couple of loan officers, too, to hear what kind of timeline they suggest for getting ready to purchase. FHA loans, which have less stringent credit requirements may be a good option.
      0 Votes

    • 35x35
      Oct, 2011
      marissa
      We've made a couple of appointments for this month. Are there any significant questions we should be asking besides the basics? (what type of loan is best for us, how to build/establish credit.. etc.) Thank you for your help!
      0 Votes

    • 35x35
      Oct, 2011
      Bill
      Assuming, as you mentioned, you cover the basics, then quiz the loan officer about the organization's underwriting department. Ask about the maximum time it takes for a loan application to go through the underwriting department and the typical time to move an application through underwriting. If you get double-talk or hesitation, then you have uncovered a mortgage broker or lender that has a problem. What good is a great rate promise if the lender cannot close the deal in a timely manner?

      Ask how many assistants the loan officer has, and what the company policy is if the loan officer becomes ill or leaves the company.

      Ask how the loan officer is compensated, and how long he or she has been with the company.
      0 Votes

  • 35x35
    Oct, 2011
    Deborah
    My husband and I are thinking about buying a home. It would be better if I took out the loan since I have an excellent credit score (his is fair), and my income is comparable to his (at $65k vs. his $80k). I also have very little debt and a solid work history, so those are not issues. The problem is my current job's a bit unsteady. There's a chance I'll lose it before we find a house we like and sign on it. Is there any way I can get a pre-approval on a loan to lock in an interest rate and amount? Or will losing my job affect the pre-approval no matter what happens?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Even with a pre-approval, your loan would have to go through Underwriting, once your put in a formal application, after finding the home you want to buy. Unless your loan closes before your job ends, it could be in jeopardy, certainly if it happens before a verification of employment is done.

      Separately, it is dangerous to finance a mortgage if you may lose your job. Unless you can make the payment and cover your other bills on only your husband's income, I would not advise committing to a home purchase. When employment and income is precarious, be careful about biting off more than you can chew.
      0 Votes

  • 35x35
    Sep, 2011
    Stevie
    I have about $410 in monthly debt ($90 in a credit card and $320 on a car loan) and take in about $1850 a month before taxes. I have a credit score of 760 and have had the same job for 8 years. I have about $11,000 in the bank, how big of a loan will I be able to get on my own if I was to get one?? My girlfriend makes more money than me but has a lot more debt and a really bad credit score. What are your recommendations?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Most lenders will not approve a loan for a borrower with a debt-to-income ratio greater than 44-45%. That means on your income alone, your total debt payments can't be more than $814-832. That does not leave a lot of room for your mortgage payments, property taxes, and homeowner's insurance, after your car and debt payments are taken into account. For instance, a $90,000 loan at 4.5% for a fixed-rate, 30 year mortgage has a payment of $456, which is a bit more than you can qualify for.

      Another factor to consider is a down-payment. I don't know what houses cost in your area, but you probably should look at an FHA loan, as you can buy a home with as little as 3.5% down. An experienced loan officer can help advise you whether you need to pay down some debt in order to lower your DTI. For example, if you can afford to pay off your car note, that opens up another $320 for your mortgage payment. Without the car payment, you can qualify for a larger mortgage (meaning a more expensive home and a higher mortgage payment). The same 4.5% payment on a $140,000 loan is about $710, something you could qualify for, if you had no car payment.

      Start by speaking with some of Bills.com's pre-screened mortgage partners.
      0 Votes

    • 35x35
      Oct, 2011
      Stevie
      I mistyped my monthly income. It's about $3,200 i take in monthly before taxes.
      1 Votes

    • 35x35
      Oct, 2011
      Bill
      The same principal applies. A 44-45% DTI would allow a total debt payment of about $1,450, leaving you with about $1,000 for your mortgage, taxes and insurance.

      Check with a few different lenders, to see what kind of loan makes sense and the best way to use your cash for a down payment or to pay down your debt a bit more.
      0 Votes

  • 35x35
    Sep, 2011
    Lisa
    My fiance and I are hoping to buy a house sometime next year. My credit score is around 660 (I have a charge off which I have paid in full about three months ago) but I have a higher income. (The charge off happened during my college years and I have since graduated and have been holding a stable high paying job). My fiance has a prime credit score but makes a lot less than I do--not enough to apply by himself. What is our best case scenario? Are we in a bad position to apply for a mortgage? Is there anything I can do to improve our situation? Being forced to rent because of a charge off from my college years would be my worst case scenario. =(
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      The old cliche applies, "the proof of the pudding is in the eating." You won't know what your options are until you take some steps to find out. You need to start speaking with mortgage lenders and seeing what you qualify for now (perhaps an FHA loan that comes with less strict credit requirements) and what you may be able to do to raise your credit score so you can get a conventional loan and how long those steps will likely take.

      Don't be discouraged. It sounds to me like you can qualify for an FHA loan today. Try applying with one of Bills.com's pre-screened mortgage lenders.
      0 Votes

  • 35x35
    Sep, 2011
    Nancy
    I have a 680 credit score (and lots of debt) and my husband's credit score is over 750 (with no debt) and I'm just wondering how much I'll hurt our mortgage rate. We live in an expensive part of the country where it's almost inevitable that we both would have to be on the mortgage. Thanks!
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Some lenders may not be willing to lend to you with a 680 score, as opposed to just charging a higher rate. You may need to look into an FHA loan, though the loan limits for FHA loans will drop on October 1st.
      0 Votes

  • 35x35
    Sep, 2011
    Marie
    My fiance and I are ready to move past renting and hopefully purchase a home soon. Due to tons of medical debt, upwards of 60K (now paid off), I was late on bills- thus denting my credit substantially. He has a +750 Fico and I at a lowly +550-600. We both have steady monthly income and a rather mediocre DTI. My question is should I try to build my credit prior to purchase or do you think we have a good shot at qualifying with his high FICO and a great monthly income?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      See my response on this page to Alissa C. on September 16, 2011, who shared facts similar to yours.

      As you can see, I believe if one person in a couple (married or not) qualifies for a mortgage alone, then that person should get the mortgage alone. Joint accounts cause more problems than they solve, whether they be checking, savings, mortgage, vehicle loan, or some other account.

      My advice? Find a way to transfer the debt that makes your fiance's DTI mediocre into your name. That way, your fiance can present an application with a strong credit score and low DTI ratio, while you bear the burden of the high DTI and low credit score. Over time, you will pay off the debt, and rebuild your credit score simultaneously.
      0 Votes

  • 35x35
    Sep, 2011
    Alissa
    My fiance and I are ready to purchase our first home. We plan to qualify for a loan on my income alone, because my fiance has been in and out of work for the last two years and has been earning unstated income. His FICO is over 700, so is mine, and neither of us have any debt. Can we add him to the loan (since his FICO is high) even though we can't use his income to qualify?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Yes, but you may not want to.

      First, half of all marriages end in divorce. I understand that no one enters into a relationship with the intention of leaving it, and I am certain both of you are convinced your relationship will last until death. But let us say for the sake of argument that it does not. If only one of you are on the mortgage and one of you wants to keep the house, you have a 50-50 chance of needing to convey the house to the soon-to-be-ex-spouse. However, if both of you are on the mortgage and you part ways, there is a 100% chance you will need to refinance.

      Second, let us assume you two remain a happy couple. Life, however, has its ups and downs. One of you may experience a time of prolonged unemployment, be at the wrong end of an expensive judgment, or suffer some other fiscal disaster. If you two maintain completely separate accounts and avoid any joint accounts, your credit identities will remain independent. One of you may have a pristine credit record and be a credit score lifeboat while the other rebuilds their credit scores. It may be a romantic gesture and a convenience to open joint accounts, but over time joint accounts create more problems than they solve.

      My advice? If one person qualifies for a home loan alone, then so be it and avoid later expensive complications by applying for a joint mortgage.
      0 Votes

  • 35x35
    Sep, 2011
    Jeremy
    Great article, here's our situation and question: My fiance and I are ready to purchase a house and get out of our rental. My income/credit score is $39,000/679 her income/credit score is $40,000/615. I've been at the same job for 5+ years and her for almost 4. We both have car loans of about $300 each (principle of $6k left on mine and $8k on hers both with high APR). I also have a student loan that is $213 a mo. She recently had to sell all her stock when her company was bought out but she got a premium and we have about $15k now in savings because of it. My question is should we pay off one or both car loans to bring down our DTI or would we have a better chance at getting a home loan using it as a down payment? I also qualify for a VA loan and though a down payment isn't required, I'm sure it would get us a lower rate.
    0 Votes

  • 35x35
    Sep, 2011
    rachael
    Can I apply for a mortgage in my name only, leaving my husband off the loan but using his income to qualify?
    2 Votes

    • 35x35
      Sep, 2011
      Bill
      You can apply for a loan in your name only using your income, credit history, and DTI. You can apply for joint loan in both names using both of your incomes, credit histories, and DTIs. Mixing and matching varies and depends on the polices of the loan underwriter.
      0 Votes

    • 35x35
      Sep, 2011
      max
      I was told by the IRS I have to pay them back because i took the home tax credit. Yes, the home is her name but i am on the deed and the taxes bill. I claim her as a dependent because she is on ssi. The irs is saying that they do not have a 1099 on me. The bank has one on her. What do i do?
      0 Votes

    • 35x35
      Sep, 2011
      Bill
      There is not enough information in your message for me to offer a useful thought regarding your issue. Because your situation regards a tax question, I recommend you consult with a lawyer who has tax law experience. He or she will research your IRS issues in detail, and will advise you accordingly.
      0 Votes

  • 35x35
    Sep, 2011
    mitch
    How long after you add someone to a home loan do you have to wait to refinance in their name?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      If the person was eligible to go on the home loan, there should be no barrier to including that person on a refinance. You can refinance as soon as it makes financial sense to do so, as long as any borrowers meet the lenders qualifying requirements.
      1 Votes

  • 35x35
    Sep, 2011
    Maggie
    Thank you - that is very encouraging. Can you please explain the below information about FHA loans and how this statement relates to this topic about a non purchasing spouse? "Non-Purchasing Spouse A married borrower who wishes to purchase a home without his/her spouse, still must include the income and debts of the spouse on the application if the borrower resides in a community property state" To clarify - does my husband's debt and income have to be included when I apply for a home loan? I was excited to see the answer to this topic (i.e. "no") but after having read the above, the two seem contradictory. Can you please explain?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      It is my reading of the rules that the credit score of the non-purchasing spouse is not factored in, but the debts and income are used to compute the qualifying DTI. This only applies in a community property state.
      0 Votes

  • 35x35
    Aug, 2011
    Maggie
    My husband and I just signed a new lease with our apartment complex that will expire in October of 2012 and are interested in purchasing a home next year. I am anticipating applying for a loan in my name only as I believe my credit history,income, and debt ratio is more favorable. We have been in our current residence since 2007. I have also worked in my present position since 2007 but am anticipating getting a new job as my current job may be eliminated. This being said, I will most likely be employed in a different line of work. I read that lenders prefer to have at least two years of employment history to verify stability. That being said, given my excellent credit rating, no outstanding debts, and employment of 4+ years (in what will be my previous position if I acquire a new job when we begin the process), I am interested to know how heavily this career move will weigh in my loan approval? Thank you for your help.
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      It sounds like you will not have a choice, and having your job eliminated is not necessarily a sign of instability. In fact, if you could find employment soon, at a similar or higher income level, it probably won't impact you at all.
      0 Votes

  • 35x35
    Aug, 2011
    Jeremy
    I was wondering what I can do so I can qualify to purchase a home. This is my situation, in January 2005 I purchased a home in California for 334,000 with my girlfriend that I had been with for 7 years. Well shortly after 6 months of living there she started cheating on me with someone from her company. I was secondary on the loan and decided to leave because it was too unbearable for me. Well, I moved on with my life and now have a wife and kids. I am in Texas now and really wanted to buy a home for me and my family. When I moved out here I got promoted and make pretty close to 100k a year. The homes here in Texas seem very affordable but I am not sure if a bank will approve me since the house that I had appeared on my credit report as foreclosed. Is there any way around that since I was secondary on the Loan and since I only live there for 6 Months?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      You may be able to get a loan. A foreclosure is not a permanent black mark against you. When the foreclosure took place and your current credit score are key factors. For conventional loans, five years is the standard after foreclosure. If you are able to get an owner to finance, that won't apply, but you may pay a higher interest rate. I suggest you call a loan officer and find out what he or she says, after viewing your credit report.
      0 Votes

  • 35x35
    Aug, 2011
    jason
    Before we got married, my wife bought a rental property in lake Havasu, AZ. Her monthly payment is 1000/month. she has a minimum payment for school loans and a car of 500 and 550. So, a total of 2050 a month toward debt. We've been married for a year now and we're thinking about a buying a home together. My main question is will they take into consideration her 1000/month mortgage payment towards our DTI ratio? I ask because most mortgage calculators never consider it, they ask about student loans, car loans, etc. but never really mention other homes. Is there a way where we can increase our borrowing potential? We're kind of stuck with this rental mortgage because its impossible to sell, but now that we want to buy our own home, it seems like we're not going to be able to afford the home that we envisioned buying. Do you have any recommendations?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Jason, your wife's mortgage payment will be counted in your combined DTI, but so will the rental income from the property. If DTI is a barrier to qualifying, there are not a lot of options. You can:
      1. Increase your income
      2. Pay off debt
      3. Reduce the size of the loan you apply for


      0 Votes

  • 35x35
    Aug, 2011
    Lisa
    Ok, I am in need of some answers. I am wanting to purchase a home. I want the loan to be in my name only, because my husbands credit score isnt good enough to use him on the loan also. But here is my situation... I make about $30,000 a year and my credit score is around 700. I have about $35,000 in student loans that are in deferrment and will be for at least another 3 years or so. I have no other other debt. I have been at my job for 1 year. I know they say you need to years of employment and I have almost that with just about 1 1/2 months break while searching for my current job. How hard will it be for me to get a mortgage loan with the issues that i stated above. I am wanting a mortgage for around $100,000. Another question i have is that my dad may be moving in with me, and he plans to pay us around $600 a month for his part of the living expenses, am I able to use this amount as part of my monthly income when applying for the loan?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      When it comes to work experience, it is not two years at your current job, but in your current occupation. If you were doing the same kind of work in your last job that you are doing in your current job, and if you held that position for over a year, you may meet the test.

      You student loans will count towards your DTI, even while in deferment, because they are going to be your responsibility during the life of the loan.

      Your Dad's contribution will not count, unless he is a co-borrower on the loan with you. Otherwise, his $600/month is considered "room rent," which is not counted in your DTI.

      0 Votes

  • 35x35
    Aug, 2011
    Fred
    It seems this is the most common cause for people coming to you...but I have bad credit and my wife's is good (780 i believe). I am trying to determine what the formula a bank would use to determine what loan she alone could get. Between the two of us we make $200k - $80k of which is her income. We live in a community property state (WA) and have about 600/month in combined student loan payments. I am really not looking to get a loan as large as I would guess our combined income could allow for...but I want to make sure that her income alone will get us the size of mortgage we need (if it comes to that). I have found calculators online, but they seem to try to tell me what I can 'afford' - not what I will be offered. Which I suspect are two different things.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      If your credit is so poor that you can't be on a loan application, then your income will not be included at all. As an aside, given your strong income, you should be able to take steps to improve your score fairly rapidly.

      Your wife's debt-to-income ratio will likely have to be no more than 44% of her debts, which include any debts for which the two of you share responsibility. Debts for which you have sole responsibility are not included in her DTI. As a rough calculation, given your wife's $80K yearly income, she can have a total debt load of about $2,933 per month for the new mortgage payment (PITI), her student loan payments, minimum monthly required credit card payments, and vehicle payments.
      0 Votes

  • 35x35
    Aug, 2011
    Heather
    Hi, Mu husband just got a new job that doubles his salary and we are looking to purchase a house. He is also in school and has student loans that are deferred. I am not working and i have loans that are also in deferment. To improve our debt to credit ratio, he will be the only borrower on the loan. We have a vehicle and bank accounts that are jointly held. Will all of our vehicle debt that is in both of our names be counted to his debt? Also, we were planning to get the down payment from our joint account, how do we do this? And will they count his new salary as the income he is receiving even though he will have only been in the position a few months at closing (I do not think he will qualify under the old salary)?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      You ask good questions about how lenders view qualifying income and a borrower's debt-to-income ratio.

      I believe that any vehicle for which your husband has financial responsibility will be counted in his DTI.

      The down payment coming from a joint account should be no problem at all.

      Lenders want to see two years at the same job, to show employment stability. If your husband's new job is doing the same type of work as he was doing before and that he has been doing that kind of work for two years, it should not be a problem. Different lenders may view this issue differently, but most, from my experience, will use his new income if he meets the two years in the same type of work test.
      Lastly, debts in deferment are going to be counted into the DTI, as they will be the borrower's responsibility during the time the loan is being repaid.
      0 Votes

  • 35x35
    Aug, 2011
    Jessica
    Hello. I am inquiring about a home loan here in the state of Florida. I have recently sold my home in TN and will have 15 to 20% to put as a down payment. My problem is I am currently unemployed, laid off last year, and am still looking for a job. I have excellent credit and will be paying my credit card debt almost entirely off soon. My husband on the other hand is filing bankruptcy and as a result will have bad credit or no credit. He has good income coming in and our monthly bills are small. How can we get a loan? My grandmother would co-sign but she is afraid she will die before the loan is paid off and doesn't want her two of her sons to know of it? (She thought she could quit-claim the property to me after closing, so just my name would be on the deed and they would have no rights to it.) Any advice as to how to make this work, sooner than waiting the 7 to 10 year period after bankruptcy?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      There are not a lot of options. Even if your grandmother were willing to be a co-borrower, the lender is going to look at the credit of anyone whose income is needed to qualify for the loan. Unless Grandma qualifies for the loan on her own, it doesn't seem that either you or your spouse will meet lenders' requirements.

      Even if your Grandma quit-claimed her interest in the property, she would still be listed on the loan. Were she to die while still on the loan, that obligation would be clear to those privy to her estate details.

      While a bankruptcy will stay on your spouse's credit for 7 to 10 years, it is not the case that he needs to wait that long to get a mortgage. Two years is the minimum period. If he takes the right steps to rebuild his credit score, you should be able to buy a home in two to three years.
      0 Votes

  • 35x35
    Aug, 2011
    Rob
    Hello, my wife and I are purchasing a home and we are a few weeks away from closing escrow. My wife is the only one on the loan, but we are both going to be on title together. I am in need of a vehicle at this time to get to work and I am thinking of purchasing a car. If I finance a car, will this affect my wife's credit score when the lender runs the second credit check before closing, even though I am not on the loan and she's my wife? Is the credit score ran strictly only for the person on the loan or is it considered combined credit since we are married? Please advise, thank you.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      You ask a great question, as many people overlook what can happen to their credit score between the time they apply for the loan and the loan closes. As you mentioned, lenders standardly pull a credit report prior to closing, to ensure that the score has not dropped below a certain level and that no new derogatory information has appeared that would make the loan a no-go or add costs to the loan.

      That being said, each person's score is his or her own. There is no such thing as a marital credit score. Your financing a car on your own should have no effect on your wife's score. If the car finance company asks for your wife's social security number, then they are going to pull her credit, which could affect her score and also make the new loan show on her credit report, which would affect her debt-to-income ratio.
      0 Votes

  • 35x35
    Aug, 2011
    Daniel
    Hi Bill, My wife and I belevee we are ready to buy our first house in FL. Last I checked, my score averaged 742. She on the other hand, has none (she recently obtained legal US residency). I added her as authorized on my sole credit card early this year, the card has been open for over 4 years with $5k limit and only $200 in pending balance. Both car leases are on my name, so we really need her income for DTI purposes. Combined income is $72k and we have $20k for down payment & closing. Do you believe we have a good chance of getting applied for a mortgage with competitive terms? Thanks in advance.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      If you need to use her income in order to get the loan required to purchase the home you want, I believe you will have to take the time and effort to establish a positive credit history for your wife. Open some joint accounts with her, have her get a secured credit card, or have the two of you buy something on installment.

      It also makes sense to speak a loan officer to better understand how long it will be before she meets a lender's minimum credit requirements. Look into FHA loans which have less strict credit requirements.
      0 Votes

    • 35x35
      Aug, 2011
      Daniel
      Thank you for your prompt reply. We just hit another brick wall when discussing our situation with a loan officer. Since only until recently my wife obtain US residency and work permit, she does not have 2 years worth of work history, and has only filed for taxes once (for 2010) out of the required two years. Guess we'll just have to wait 'till next year. Thanks again, and good luck to all the readers trying to fulfill their home ownership dreams!
      0 Votes

  • 35x35
    Aug, 2011
    April
    My husband and I want to get a house around tax time with about $7000-$10,000 dollars down. I don't work and he does work. I have bad credit so if my husband can apply for a loan on his own that'd be great. However, my husband has little credit to really no credit. All he has bad on his history is a bank he needed to pay off in the low hundreds, and he recently paid it. How is our chances of getting a home with his little to no credit? Were ready to move forward and I'm worried something will end up stopping us one way or another. Thanks
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Your husband needs to have a credit score that meets prospective lenders' requirements. Until he improves his credit score, he won't qualify.

      He needs to take steps to start building his credit history and score, so the two of you can buy a house sooner rather than later.
      0 Votes

  • 35x35
    Jul, 2011
    katelyn
    My husband and I are wanting to get a USDA Rural Housing Single Family Housing Guaranteed Loan in Montana but I have a low credit score but his score is excellent. Could he just apply for that type of loan then or does an USDA Rural Housing Single Family Housing Guaranteed Loan require every adult household member need to be on the loan, also if is ok for him to apply and his annual income is 33,260 could he qualify for an RA loan maximum amount of 162,500?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      I don't believe that both spouses must be on a USDA loan application. The key issue for the two of you is whether or not your husband has enough income to qualify for the loan on his own. Lenders will look at his debt-to-income ratio (DTI). Given the income you listed, it will be hard for him to qualify for a loan on his own. I don't know the interest rate you are being quoted, or what you property taxes and insurance will be, nor if you have any other debts to service, such as car payments, student loans, or credit card bills.

      What you need to do is speak with lenders, to see if he can qualify on his own or not. Also, see if your credit is so poor that you can't be included on the loan. If it is, work on improving your score.
      0 Votes

  • 35x35
    Jul, 2011
    Cyrus
    My wife and I are in the process of applying for a mortgage. Both of us have good credit scores (755 and 747). I've been reading up on mortgage requirements, and apart from the usual blurb, I've read that applicants need to have at least three active trade lines. For my wife, that's fine, but I only moved to this country 4 years ago, and as such only currently have two active trade lines. I have a credit card and a car lease in my name, and am an authorized user on a credit card that she has, but as far as I'm aware that won't count towards the three that I need. So, my question is, how do lenders typically treat trade lines? If we apply jointly, do they take a 'combined' number of trade lines, or does each applicant have to satisfy the requirements individually? Are we dead in the water for applying jointly, or are there alternate methods/options that we could consider? We both make good money, but she already has two other properties in her name, so including my salary would certainly help us. Thanks
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      Have you tried applying for either a credit account on your own or one with your wife? Even a store credit card or a gasoline company card count as a tradeline. If you can't get a card like that, look into a secured credit card, but make sure it reports to the credit bureaus.

      Separately, speak to a prospective lender and hear what they say. The two of you may qualify for a loan, even with your lack of tradelines.
      0 Votes

  • 35x35
    Jul, 2011
    Catherine
    My significant other and I are begining to discuss purchasing a home. Our situation: both have above average incomes, he has a good credit score, me not so much roughly 550. DTI is minimal for him, as his student loans have not kicked in yet. I'm not so lucky, I have student loans under my belt. We are seriously considering having him only apply for the mortgage, adding me to the property title later. My question is; do you recommend that he apply for a preapproval before his student loans kick in or is that considered as cheating the system? The income will remain the same, however, DTI will obviously increase. Additionally, to assist with the downpayment and to have better leverage on the purchasing field, I am thinking of "gifting" a lump sum at the time of purchase. If I gift, will they take into account my credit score and/or income? Lastly, if I am not involved in the mortgage, am I allowed to partake in the sales contract?
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      A smart underwriter will see that your significant other has a looming student loan on the horizon, and it is likely the underwriter will calculate your significant other's DTI based on those payments, too. As a practical matter, a potential homebuyer should base their buy/no-buy decision on realistic income and expense figures.

      Regarding the gift for the down payment, the giver does not need to be a loan co-applicant.
      0 Votes

  • 35x35
    Jul, 2011
    bobby
    I have a score of 710 and my wife's is mid 500s with about $6,000 in credit card debit. I want to apply for my mortgage loan on my own. Is her credit going to hurt me? I am using a first-time home buyers program from my city.
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      If you can qualify for the mortgage loan on your own, then your spouse's poor credit will not be an issue. Only if your spouse were on the application, would her credit come into play.
      0 Votes

  • 35x35
    Jul, 2011
    monica
    My husband has a credit score of 681 and has a pretty decent income. I on the other have horrible credit. Is it possible for us to combine our credit on the application process but only use his score? Like useing my credit as "other" income?
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      No, you can't use your income to qualify for the loan without having your credit score come into play. If your income is necessary to meet the lender's debt-to-income ratio requirements, then you need to understand how to improve your credit score and then take the right steps to do so.
      0 Votes

  • 35x35
    Jun, 2011
    Rebecca
    My husband and I are trying to purchase a mobile home. We have learned that it is extremely difficult to get financing for a mobile home. The issue...my husband qualifies on his own for a VA mortgage loan. We thought we were almost done and the home was ours, but because we live in Texas the bank called and said they had to run my credit but it shouldn't affect anything because he was going to be the only one applying for the loan. Well, I have some outstanding student loans so we were denied the home loan. I am in a rehabilitation program to get my student loan up to date. My question...is there anything that can be done for us to get this home or are we just out of luck?
    0 Votes

    • 35x35
      Jun, 2011
      Bill
      Talk to another lender. Texas is a community property state, but there is no law requiring married people to have joint mortgages.
      0 Votes

  • 35x35
    Jun, 2011
    Jessica
    Know you get this a lot but the situation is this my husband has good credit and is military so gets the VA loan but I have no credit and work a low paying part time job we met with a reailty and found a house we loved everything was good till she want to add me because we married she told us we had too I don't understand why we couldn't just use him and last year for our taxes of 2010 we filled as separated if that helps we live in southern California is there hope for us
    0 Votes

    • 35x35
      Jun, 2011
      Bill
      There is no legal requirement for both spouses to apply for a mortgage in California or any other state. There is no legal requirement that both spouses' names appear on the property's title, either.

      If your spouse has a stable income history, a strong credit score, and a low debt-to-income ratio, there is no reason for you to apply for a mortgage jointly. I assume the person who insists you add your name to the mortgage is a mortgage broker. Ask why. If the broker blathers nonsense about a state law requiring it, then find another broker that understands the law. If the mortgage broker says your spouse does not earn enough income for the mortgage amount you seek, then that is another issue. Only if your income is needed to qualify for the loan would your credit history come into play.
      0 Votes

  • 35x35
    Apr, 2011
    Kristina
    I am being relocated back to my hometown in Indiana and after being told that I was pre-approved by my mortgage broker I found a home and have an accepted offer. Now I am being told that I am only approved if I have my home in NJ sold (which I don't and don't forsee happening soon). My DTI is too high with the current mortgage and my husband does not have a job in Indiana yet so they can't count him on the loan. If my mother-in-law co-borrows with me will that help to bring down my DTI. She has excellent credit but not sure if this is something I should pursue as she has offered to do so.
    0 Votes

    • 35x35
      May, 2011
      Bill
      Customarily, a guarantor is used when the applicant's credit score is low. But ask the loan officer if adding a guarantor will help you in your situation. I do not see how adding a guarantor will help with your DTI calculation, but perhaps if you are teetering on the edge of a yes/no decision for the loan underwriter, a guarantor will push your application into the yes pile.
      0 Votes

  • 35x35
    Apr, 2011
    stuart
    i forgot to mention i also have a quit claims deed on home that i got during the original mortgage! loan is thru chase bank and he assured me i can assume mortgage payments when she dies!!!
    0 Votes

    • 35x35
      Apr, 2011
      Bill
      Was the person who told you your mother's mortgage was assumable a lawyer? If so, then you have a reason to believe the mortgage is assumable. If the person who told you the mortgage was assumable was the loan officer or someone involved in the sale of the loan to your mother, you have every reason to be skeptical. I say that because a person motivated to close a deal is not motivated to be accurate and forthcoming about a contract's terms and conditions. In other words, they may have told you what you wanted to hear. Read the contract or pay a lawyer to read the contract and explain if and how the assumption will work.
      0 Votes

  • 35x35
    Apr, 2011
    stuart
    hi, me and my mom are on title of home. she is on mortgage not me! we just refinanced for 57,000 and they told me i can assume payments when she dies. i have no job and bad credit but will have the funds when she dies. i was told i will need to get my own loan by others? will i need to pay loan off in full maybe? how long do they give you when mortgage company finds out she dies?
    0 Votes

    • 35x35
      Apr, 2011
      Bill
      I see two issues in your questions:
      1. Is the refinanced mortgage assumable? Read the mortgage and look for a section called "assumption." Alternatively, hire a lawyer to read the contract and advise you regarding your rights of assumption.
      2. If the answer to the assumption question is "no" (and I am not saying it is or is not assumable), then how can you position yourself to get a mortgage? Obviously, you need employment, and you need to repair your credit score.

      Hire a lawyer to read the mortgage. Ignore any other legal advice you get from "friends" regarding the mortgage, unless they are lawyers who have read the mortgage.

      0 Votes

  • 35x35
    Mar, 2011
    bart
    Our house we live in which is our primary residence is listed in my name. My wife abandoned her previous home that was listed in her name only. The lender has the home for sale. She was issued a 1099-A outstanding prin-148K tax value-140K. What do we owe the IRS? Also, if we file jointly this year will this effect our ability to purchase a new home in my name only? Thanks!
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      The answer to your first question question may be "zero" depending on circumstances you did not include in your message — or you may have a large tax liability depending on your circumstances. See the Bills.com resource 1099-A vs. 1099-C to learn more about the 1099-A you received and the IRS publications you need to review. Also see the Mortgage Forgiveness Debt Relief Act link on the page I just mentioned.

      Regarding your second question, if you qualify for a mortgage loan on your own, then your spouse's credit score, income history, and debt-to-income ratio are irrelevant.
      0 Votes

    • 35x35
      Apr, 2011
      Stacy
      Hello... I am married with no stated income for the last two years.However I have great credit and my husband does not .We want to buy a house What should we do ?He is the one with the income..but poor credit..Please advice me..
      0 Votes

    • 35x35
      Apr, 2011
      Bill
      Because your husband is the sole, verifiable wage-earner, his credit score is key to qualifying for a loan. He needs to take the right steps to improve his credit score. You did not say what his credit score is, but until his credit score is at least decent qualifying for a mortgage loan could be very difficult, if not impossible.Most lenders require strong credit for mortgage loans. FHA loans have lower credit score requirements, so they are worth looking into.
      0 Votes

  • 35x35
    Feb, 2011
    Val
    My soon-to-be-ex partner and I are both on our current mortgage which is upside down. I want to move on with my life and would like to purchase a home in my name only. I had heard that in the current mortgage situation that the lenders would not consider my current mortgage obligations in any decisions. Is this true or was it only for a period of time?
    0 Votes

    • 35x35
      Feb, 2011
      Bill
      Mortgage underwriters look for:
      1. High credit rating
      2. Steady income history over the last two years
      3. Debt-to-income ratio of 36% or less
      4. Down payment

      If you have all four of the above, then you will have few problems finding a mortgage. However, if you are already on a mortgage, your debt-to-income ratio may be an issue.

      0 Votes

  • 35x35
    Feb, 2011
    Doug
    I am trying to find out if my wife would qualify for a loan by herself for another home . She has income and a good credit score. I am the only name on the first mortgage and almost all the debt we have is in my name alone (i.e cars, loan etc). I am trying to find out if she can even purchase a home and be considered a first mortgage for her?
    0 Votes

    • 35x35
      Feb, 2011
      Bill
      Your wife can certainly shop for a mortgage on her own. She will be reviewed for qualification for the loan based on her debt-to-income ratio, her credit score, and the size of the loan compared to the value of the home. If she meets the lender's standards, then the fact that you own a home should not be a barrier to her obtaining financing.
      0 Votes

  • 35x35
    Jan, 2011
    John
    My wife and I have been separated for 2 1/2 years and I want to buy a home. This will be my first time buying a home but the lender is telling me my wife's debt is affecting the amount I can qualify for. However we have been filling taxes separately for the past 2 years. Does her debt affect my home loan amount if we have been separated for 2 1/2 years?
    0 Votes

    • 35x35
      Jan, 2011
      Bill
      First off, lenders can make whatever rules they want in order to decide whether or not to approve you for a loan. Therefore, the lender can most definitely include your wife's debts in your debt-to-income ratio. It may be the case that you still have some legal liability to pay her debts, so the lender wants to protect its interests in case you end up having to use your income to pay on any part of her debts. You can try to demonstrate to this lender that your wife pays all of her debts on her own, by providing proof in the form of bank records/canceled checks. Separately, it is not clear to me from what you wrote whether or not you are legally separated. If filed for separation, did you let the lender know this? If you are not legally separated, find out if the lender will view your file differently, if legal separation is filed. Your other choice is to speak to other lenders, to see if they view the situation any differently.
      0 Votes

  • 35x35
    Jan, 2011
    Jered
    Also, the current mortgage is an 80/20, and she did refinance a year later to pay off some credit cards.
    0 Votes

    • 35x35
      Jan, 2011
      Bill
      A spouse's refinance of his or her mortgage will have no impact on the other spouse's loan application.
      0 Votes

  • 35x35
    Jan, 2011
    Jered
    My wife owns our house, but we are at a point where we've outgrown it (3 children later) and are having a hard time affording it (due to a "bad" loan to begin with, we're finding). I am not on the mortgage and signed a quit to deed when it was purchased. My credit is now very good, and I can qualify for a mortgage on my income only. She is considering stopping making mortgage payments completely for a few months, so that I would have a down payment, while trying to short sell (the house is upside down $200K, so we don't know how likely the bank will be to accept a short sale anytime soon). We are in California, have a joint bank account, and file together. Will lenders require her credit to be pulled as well? And is this feasible?
    0 Votes

    • 35x35
      Jan, 2011
      Bill
      There is no California law requiring that the spouse of a borrower provide his or her credit score or other financial information when the borrower applies for a loan. Nor is it common practice in my experience. A mortgage originator may, as a matter of company policy, require the applicant provide that information. In your case, if the lender asks for the information explain you are not going to provide it. If the mortgage originator says you must, then thank them politely, tell them it is not their business, and keep shopping.
      0 Votes

  • 35x35
    Dec, 2010
    Maria
    My husband and I are in the midst of buying a house. He is the one that has been prequalified and will have the mortgage in his name. My parents are very concerned about my name not apearing on the mortgage, title or deed, I have a poor credit score and my husband's is stellar. I know, based on previous posts, that a will can be put in place for asset transfer in the event of death, but was wondering if there is a way to add me to the title and/or deed without impacting the mortgage financing/excellent rate my husband will be able to secure on his own.
    0 Votes

    • 35x35
      Dec, 2010
      Bill
      Your husband can add you to the title, without your being a co-borrower. He should speak to the loan officer to make the proper arrangements. Regulations vary from state to state, but you will probably have to sign certain paperwork at your husband's loan signing. Separately, I recommend that you think about a will and estate planning. In the unfortunate event of your spouse's passing, if you are not on the mortgage, then you have to pay off the mortgage, qualify for a loan that will pay off the mortgage, or sell the home. It may be worthwhile to have your husband get a term life insurance policy that will leave you enough to pay off the mortgage. Lastly, I suggest that you read about some easy steps you can take to improve your credit score.
      0 Votes

    • 35x35
      Dec, 2010
      Howard
      Myself and my wife live in California and the loan and title is in her name only. I would like to buy an investment property in my own name using my own income and credit only. I obviously don't pay my spouse any 'rent'. Will the lender on my investment property mortgage 'ding' me for say half of the housing payments on the primary residence or ding me for any "rent" payments to her when calculating my DTI on the investment property?
      0 Votes

    • 35x35
      Dec, 2010
      Bill
      There is no legal reason for the mortgage underwriter to require a spouse of a California applicant to make a financial disclosure. However, because California is a community property state, it may as a company policy require the applicant's spouse to make a disclosure. If this creates a problem, continue your mortgage shopping to find mortgage company that does not require a spousal disclosure.

      Regarding your inferred contribution to your spouse's mortgage payment, again, that is a company-by-company policy, and is certainly not a law.
      0 Votes

  • 35x35
    Nov, 2010
    Joyce
    My husband has excellent credit and a good income. I have no income and he currently pays my student loans and car payment. If he applies for a mortgage by himself will his DTI be affected because he is paying my bills? My debt currently costs about $650/month so it is a significant amount. We are planning on leaving me off of the application all together.
    0 Votes

    • 35x35
      Nov, 2010
      Bill
      Is your spouse a co-signer on the student loans? Is your spouse a co-signer on the car loan? A spouse needs to include the loans he or she has legal liability for in a loan application. A spouse need not include the payments he or she makes based on a private agreement between the spouses.
      0 Votes

    • 35x35
      Dec, 2010
      Dawn
      I am buying a home in CA (my husband is not involved in the loan). The lender is telling me that the underwriters are counting his child support obligation from a child he had before we were married towards my debt to income ratio. Can they do this since it's not my obligation?
      0 Votes

    • 35x35
      Dec, 2010
      Bill
      Underwriters enforce a lender's rules for loan qualification. Each lender has its own underwriting standards and a lender can make its underwriting rules strict or less strict, as it pleases. It is possible for your lender to include your spouse's support obligation in your DTI analysis. Does the child support deduction show on a tax return you filed jointly with your spouse? If it does show on your tax returns and they are filed jointly, the underwriter will assume it’s a joint obligation. Perhaps you can provide the underwriters with your spouse's divorce papers to show that it shouldn’t be counted towards your DTI.
      0 Votes

  • 35x35
    Nov, 2010
    Tammy
    I have a tax lien under my name My husband doesnt but we want to buy a home only under his name and income would that affect us? I wont be on title.
    0 Votes

    • 35x35
      Nov, 2010
      Bill
      One spouse can have excellent credit scores and the other can be a FICO disaster with judgments and other derogatory entries on their credit score, and the bad-credit spouse will have no impact on the good-credit spouse.
      0 Votes

  • 35x35
    Sep, 2010
    Bill
    Whether the co-applicants are domestic partners, spouses, siblings, or parents-children does not matter to the mortgage companies and the underwriters therein. What matters to the underwriters are the numbers. What is the appraised value of the property? How much are the applicants putting down? What are the applicants' DTI? How stable is the work history? Last, and least, is what are the applicants' credit scores, and if there are derogatory entries on the credit score what do they mean? I realize you are asking a yes or no question regarding whether you can use your co-applicant's credit score to apply for a mortgage. The incomplete answer is "yes" and the full answer is "yes, but your co-applicant's credit score is not enough."
    0 Votes

  • 35x35
    Sep, 2010
    Trent
    I am employed by a college and make over $120K a year & have very bad credit from a foreclosure 3yrs. ago. My domestic partner who does not work have tier one credit, over 800. Since we file a joint return with her as my dependent, can we qualify for a mortgage using her credit and not mine? My college allows me to cover her under my health insurance as they would a married couple. We use her credit to buy all things we need, since mine is messed up and have a solid payment history. We can prove this through bank statements. What can we do, since my foreclosure is there and other collection accounts. I will be paying them off in December of this year in total, except for the charged off Mortgage.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    If your fiance is on the application, his poor credit will definitely be considered by prospective lenders. There is no way to avoid that. Your income is not strong enough to qualify for a loan without him. I have two suggestions. First, check into an FHA mortgage. Your fiance's poor credit may not be a barrier to an FHA loan. The FHA credit requirements are more lenient than those used by banks or other mortgage lenders. Second, your fiance should work on boosting his credit score. I suggest you and he read Bills.com's wide range of information about credit scores. Please read How to raise your credit score; credit utilization tips; what affects a credit score; and visit the Bills.com credit report resource page.
    0 Votes

    • 35x35
      Jun, 2011
      Richard
      My wife and I are in a similar situation. My wife is a stay at home mom. She has a 700+ credit score. I have been the income provider with a steady job history, but have never established credit. I've always saved up first and then bought what I needed. We are wanting to buy a house at some point, and are wondering if we would be able to. I have had a terrible time getting any sort of credit established. I've applied for all types of credit cards but have gotten the same response (without a credit history I can not get approved). I've checked my credit history and there is nothing there. I guess my two questions are. 1) How can I establish credit? and 2) How can we buy a house if I don't?
      0 Votes

    • 35x35
      Jun, 2011
      Bill
      You have to take the right steps to establish credit when you have no credit history or a limited credit history. Please review the information in the bills.com resource, "How to Improve Your Credit Score." As that article points out, you may have to start by getting a secured credit card.

      If you are the primary breadwinner, then you must have a credit history if you want to take out a mortgage to purchase a home. If you take the right steps, you should be able to establish a sufficient credit history and credit score to buy a home within two years.

      Once you are ready to buy a home, make sure to look at FHA purchase loans, as FHA loan programs have less stringent credit requirements than standard mortgage programs.
      0 Votes

  • 35x35
    Sep, 2010
    Ariel
    Hi, I was wondering I'm a stay at home mother/baby sitter. I make $400 a month while doing that. I also have a good credit scrore (700+). My fiance has horrible credit (way below 550.) But he makes 35,000 a year. He has $3,000 in collections. Is there anyway we could get a loan in my name with him as a co-applicant, or just in my name? His collections are holding us back. And our growing family is getting to big for apartment living.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    He may want to start off by building his credit. I wrote an article on how to build credit. Please read this article. In the mean time, it may make sense to rent while your husband builds his credit.
    0 Votes

  • 35x35
    Aug, 2010
    Regina
    My husband took a job in January which requires us to relocate. I own our home, I bought it 7 or so years before we got married. He is not on this mortgage at all. He already relocated which has caused me to go from working 35-40 hours a week, to about 12 hours a week due to lack of over night child care. Therefore we have had our house up for sale, but have not been making payments due to the change in household income. I have always had excellent credit, this will be the only negative thing on my credit score. He applied for a mortgage solo & was told he does not have enough credit history. Where do we go from here?
    0 Votes

  • 35x35
    Aug, 2010
    Bill
    I realize the dynamics of every marriage differ. Myself, I have owned property jointly with my spouse, with my spouse as the only person on the mortgage and title, and with just me on the title and mortgage. I did not feel any differently towards the properties in any of those situations so I (wrongly it seems) feel everyone else who is married feels the same way. The key issues for me are, should your spouse be the only name of the title and he or she dies without a will, 1) how much of the property will you inherit, and 2) how much of the property are you entitled to should you divorce? Please see the Bills.com resource Will Adding My Name To A Mortgage Help My Credit Score?

    Regarding your questions, yes, having your name on mortgage that is paid regularly will boost your credit score. I do not see you getting a better rate by adding an applicant who earns no income.
    0 Votes

  • 35x35
    Aug, 2010
    ami
    Thank you Bill. I want to be on the mortgage because I want it to be OUR house, not HIS house where I just stay. We rent now and he is the leaseholder while I am only an occupant and it causes problems for me. My husband also has incredible job security so we are not concerned about loosing his income until he retires. Also if I have a mortgage on my credit report won't my score just go up? I guess what I really need to know is will our rate be worse with one income and two people? Would we get a better rate with just him?
    1 Votes

  • 35x35
    Aug, 2010
    Bill
    Ami: A spouse not earning an income can be included on a mortgage, or not. I am curious why you want to be on the mortgage. There are many reasons not to be. For example, if your household income drops and you can no longer afford the mortgage, your spouse will be responsible for the deficiency balance (assuming you live in one of the 40 non-community property states), and your spouse's credit score will take the fall and not yours. If you are concerned about inheriting the property if your spouse dies, that can be handled with a will. In other words, there are strong reasons for you to not be on the mortgage.
    0 Votes

  • 35x35
    Aug, 2010
    ami
    I was wondering if a stay at home parent can be on a mortgage? Between my husband and I he works, and I stay home. We both have good credit (not excellent, but good, 700+). I just have no income. Am I going to be left out of the home buying?
    1 Votes

  • 35x35
    Aug, 2010
    Bill
    Bruce: Your spouse needs to show a steady income history, and your adding your spouse to your company's payroll now may set-off alarm bells at the mortgage underwriter's desk. I do not see that adding her as a shareholder will do anything except add to her net-worth, which is largely ignored by mortgage underwriters. What have you got to lose by trying and adding her to your payroll?
    0 Votes

  • 35x35
    Aug, 2010
    Bill
    Sydney: Impossible for me to answer your question without reviewing the contract you signed when you placed your bid on the auction. What you seek to do may be forbidden explicitly. It may be allowed. The answer to your question can be found in your auction contract.
    0 Votes

  • 35x35
    Aug, 2010
    Sydney
    I won an as-is cash property at auction that was a seized property. My husband already has pre-approval for the amount but my name isn't on it. Can he use this potential loan that is in only his name for the purchase of the auctioned house that I won?
    0 Votes

  • 35x35
    Jul, 2010
    Bruce
    We are currently trying to buy a house however my wife's income isn't approving us for very much house and we cannot use my income because my credit is so bad. I own my own business and was wondering if there is some way to put my wife on payroll to increase her income. Or just make her a shareholder in the business. Thanks for your help.
    0 Votes

  • 35x35
    Jul, 2010
    Bill
    Depends on the facts of your situation. Are you related to the person who has the mortgage? Are both of you living in the property? If the answer to both of these questions is yes, then I do not see an issue.
    0 Votes

  • 35x35
    Jul, 2010
    sara
    hi! i'm on the tittle of a property but not the mortgage. i have a bad credit score. if the mortgage is refinanced, will me being on only the tittle but not the mortgage affect the chance of it being approved?
    0 Votes

  • 35x35
    Jul, 2010
    Bill
    The situation you described is common. Your loan officer will provide a template gift letter for you to complete and sign that describes the amount you will give your spouse before the house purchase.
    0 Votes

  • 35x35
    Jul, 2010
    Amanda
    My husband is getting a conventional mortgage in his name only because my score isn't high enough to be included on the loan. My question is, since we have separate banking accounts, how do I go about helping with the down payment and/or closing costs since my name isn't on the loan? Obviously I will still be a part of the whole process financially, but don't know what's legal and not when it comes to separate accounts.
    0 Votes

  • 35x35
    Jul, 2010
    Bill
    Your spouse's credit score is irrelevant if you qualify alone based on your income, credit score, and debt-to-income ratio (DTI). In some states, Wisconsin is one, the other spouse's credit is checked when one spouse applies for a loan, but the other spouse's credit score should not determine whether the applying spouse qualifies. You mentioned California. In California, the non-applying spouse can have the worst credit score possible and a frightening DTI, and that will have no bearing on whether the applying spouse qualifies.

    As mentioned above, banks want three things in a perfect borrower: 1) Stable income; 2) Attractive credit history; 3) Low DTI ratio. If a customer is lacking in any one (or more) of these, said customer will have a difficult time getting a loan. The only way for anyone to answer your question is for you to work with a broker and see what mortgages you qualify for. Download a Uniform Residential Loan Application (Form 1003), complete it using only your income and credit. Then, complete a second Form 1003 with both your income and the income of your spouse. Finally, start shopping. Get mortgage quotes from up to four pre-screened lenders from Bills.com.
    0 Votes

  • 35x35
    Jul, 2010
    Melissa
    I forgot to add in my last comment I am applying for an FHA loan, if that makes any difference
    0 Votes

  • 35x35
    Jul, 2010
    Melissa
    I am married, have perfect credit and enough income to qualify for a house on my own. My husband has bad credit and can not be attached to the loan. I have heard different things- I want to make sure that his debt is not counted against me even though he is not on the loan. I have heard it would be added to mine, which would make my loan amount lower that I could qualify for. Is this true? And do I just mark that I am married, go with my credit score, my income and just my debt, and it nothing with my husband will be reflected? California
    0 Votes

  • 35x35
    May, 2010
    Bill
    Eric: You are asking me to summarize my original answer above and subsequent comments. Read my answer to Fawn on this page dated 02/24/2010. The facts in Fawn's situation may by slightly different from yours, but the analysis and action-plan are the same for you.
    0 Votes

  • 35x35
    May, 2010
    Eric
    I live in Southern Ohio. I was recently married this April. Prior to my marriage, I cosigned a loan for my mother. She (like thousands of other Americans) ran in to severe financial difficulty and lost her job. For whatever reason, I was not aware of how bad it was and she defaulted on the loan and it is now in collections and IS on my credit report on freecreditreport.com. It has dropped my experian score down to 579. I am currently an advanced EMT and work 2 jobs and between the two i make roughly $40,000+ annually. My wife is a registered nurse, has an experian credit score of 767 and pulls in over $50,000 annually. Since she has found out about my having a collections account on my credit she is very upset and truly believes that we will not be able to buy our home because of my score and being in collections for the loan i cosigned on. She thinks she cannot get the house in just her name without me on it just because we are married. Her debt-income ratio is outstanding. She almost near perfect credit and i know she could qualify and LEGALLY have the house in her name only. Can you please type me back the details that just because we are married DOES NOT mean she can't get the home loan in her name only?
    0 Votes

  • 35x35
    May, 2010
    Bill
    Go to AnnualCreditReport.com and get a credit report to find the answer to your question for certain.
    0 Votes

  • 35x35
    May, 2010
    Stacey
    My husband had great credit, but then we fell behind on our mortgage. We were in pre-foreclosure status and agreed to a repayment plan. Does this still show as a foreclosure on his credit report? We were looking at moving within the next year and we weren't sure that was possible any longer.
    0 Votes

  • 35x35
    Apr, 2010
    Bill
    Yes.
    0 Votes

  • 35x35
    Apr, 2010
    Courtney
    My husband and I are ready to buy our first home. He has excellent credit but low income. I have bad credit but a better income. We spoke to a lender in reference to obtaining a loan using just his credit, income and my income as family contribution income. She stated that in order to use my income, they have to use my credit also. Is that correct?
    0 Votes

  • 35x35
    Apr, 2010
    Bill
    What have you got to lose by shopping for loan? Download a Uniform Residential Loan Application (Form 1003), complete it using only your spouse's income and credit. Then, complete a second Form 1003 with both. Then shop! Get mortgage quotes from up to four pre-screened lenders from Bills.com.
    0 Votes

  • 35x35
    Apr, 2010
    JP
    My husband has the income, but the bad credit (575)I have better credit (705) but am not working currently because of our new baby. We no longer wish to rent. My husband does have a VA loan from serving in the military. We are looking for a modest loan of about 75,000. I am wondering if it is even worth it to apply for a home loan at this time or if the lending atmosphere is too strict. Thank you.
    0 Votes

  • 35x35
    Apr, 2010
    Bill
    Impossible to answer your question without knowing more information. For example, in Wisconsin, creditors are required by law to notify the spouse of the debtor when the debtor executes a contract for a loan. If your daughter is in Wisconsin or a state with a similar law there's your answer. Some states require the non-signing spouse to a mortgage to sign a document indicating they will make no claim to the property, aside from what is allowed under law. I'm left to speculate without knowing your daughter's residency.
    0 Votes

  • 35x35
    Apr, 2010
    Donna
    My daughter recently applied for a mortgage in her name only because her husband filed bankruptcy on debts incurred prior to their marriage and also had a home foreclosure. She was pre-approved, found a house, negotiated a price, and gone through the inspection and appraisal process with no problem. Her husband was not on the application, they have no joint accounts and they file married filing separately. Today the mortgage company asked for a copy of his divorce decree and their marriage license. Why would they want these documents if he is not a party on the mortgage?
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    You can always apply for quotes individually and then as a couple and see what pulls in the best quotes. Just so you know, you can apply for free mortgage quotes at Bills.com.
    0 Votes

  • 35x35
    Mar, 2010
    Angelina
    I will be getting marry in May. We will move into heird property so we can pay off my debt of over 40,000.00. I make over 95,000.00/year and my soon to be husband makes 35,000.00. He has excellent credit (score of over 800) and very little debt. Mine is way below average (550) and I just foreclosed on a home in June 2009. Our plan is to pay off all our debt and save enough money to have 10% down payment. We estimate that it will take us 2 years to do this. Will paying off my delinquent accounts and having money to put down on a home help us to get a lower interest rate? How long after foreclosure can you purchase another house?
    0 Votes

  • 35x35
    Mar, 2010
    Shannon
    My husband and I are going to purchase a house. I have higher income and only one credit score..the other two claim my file is too thin to create a score. He has really good credit with lower income than myself. Is there a way we could get the loan with both of us on the mortgage with our situation or should we just try and get the mort with only him??
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    Banks want three things in a perfect borrower: 1) Stable income; 2) Attractive credit history; 3) Low debt-to-income ratio. If a customer is lacking in any one (or more) of these, said customer will have a difficult time getting a loan. The only way for anyone to answer your question is for you to work with a broker and see what mortgages you qualify for. Download a Uniform Residential Loan Application (Form 1003), complete it using only your income and credit. Then, complete a second Form 1003 with both your income and the income of your spouse. Finally, start shopping. Get mortgage quotes from up to four pre-screened lenders from Bills.com.
    0 Votes

  • 35x35
    Feb, 2010
    Fawn
    My husband and I would like to apply for a mortgage. Between the two of us we make about 85,000/year. I have good credit, but he has almost no credit and on top of that he has only had his job for 4 months. He moved to this country only 3 years ago and until his full time job he did free-lance and odd jobs. We are hoping to qualify for a house about 200,000 dollars. Does this seem possible? or will they not consider his income? We have one car payment and one student loan but no other debt.
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    What you are suggesting happens frequently. It is common for one spouse to have terrible credit, and another to have excellent credit, and for the couple to get a mortgage with the excellent-credit spouse alone.
    0 Votes

  • 35x35
    Feb, 2010
    danny
    I want to buy a house but exclude my wife. She has bad credit. We filed a joint return, and i'm wondering what we can do. She has no income and we are looking into an fha loan is this possible?? Would form quit claim deed work for us?? We live in CA.
    0 Votes

  • 35x35
    Jan, 2010
    Sara
    my husbands vehicle was repossessed, it was in his name only. If I have the tax return placed in my bank account can the car company take that money?
    0 Votes

  • 35x35
    Jan, 2010
    Bill
    Depends on your state of residence. If you are in a community property state it is legally possible (but unlikely) for the creditor to attempt to get a judgment against you. If you live in a non-community property state, it is almost a certainty the creditor may not get a judgment against you, if you are not a co-signatory to the loan contract for the vehicle. See All about voluntary repossession and Collections Advice to learn more about your husband's rights.
    0 Votes

  • 35x35
    Nov, 2009
    Bill
    There are facts you did not include in your question that are highly relevant, including your income and job history. The only way for anyone to answer your question is for you to work with a broker and see what mortgages you qualify for. Download a Uniform Residential Loan Application, complete it, and start shopping. Get a mortgage quote from up to four pre-screened lenders from Bills.com.
    0 Votes

  • 35x35
    Nov, 2009
    Tom
    i just went through a short sale in september (completely closed out and reflected as paid in full less than the full balance on credit report). Since then i have cleaned up my credit report and have had some negative items removed from my report thus the only negative is the short sale. my credit score just checked is 727 (only on 1 of the 3). is it possible to get another mortgage and if not when or could my wife get a mortgage (homemaker) and i co-sign for the income. she was left off the first mortgage (short sale) so there is nothing negative on her credit?
    0 Votes

  • 35x35
    Oct, 2009
    Bill
    Credit scores are calculated using a proprietary formula. Therefore, it is impossible for anyone to say with certainty how much one event (such as a foreclosure) will increase or decrease your credit score. To learn more about how credit scores are calculated, see FICO Score Calculation. You did not ask about this subject, but I suggest you contact your divorce attorney regarding child support. Your ex-spouse being self-employed does not give him the right to ignore court-ordered child support. Your state may offer you various means to force your ex-spouse to stay current in his payments, including suspending state-issued licenses, including his driver's license, license to practice law, and so on. An attorney experienced in family law will assist you in collecting support from your ex-spouse.
    2 Votes

  • 35x35
    Oct, 2009
    Vicki
    I am currently divorced.. Back in 2007 my husband at the time couldnt apply for a house loan so he asked me to so we could move into a bigger home we lived in one of his parents rentals.. Income wise I knew that the loan that I qualified for I would never be able to pay on my own. but with my husbands income we were more then fine.. So I qualify for the loan move in and two weeks later my husband tells me that he wanted me to get the house for the kids and I but he was having an affair and that he was not moving to the new home with us.. It was devastating. So mind you I tried everything to afford the house on my own but I have six kids he doesnt pay his support and is self employed so know way to garnish him. The house went into foreclosure. Even the judge felt bad about the story.. So anyway.. after the foreclosure the house sold quickly... How will that be on my credit... I am so afraid of what my future holds finanacially.
    0 Votes

  • 35x35
    Sep, 2009
    Bill
    Community property law concerns the ownership of property acquired during marriage and its division upon divorce. A spouse applying for a loan in a community property state makes the same disclosures as a spouse in a non-community property state. If you remain as Oregon residents, the Washington property will be handled the same way in a divorce that a Oregon property would. However, if you plan to become a Washington resident, then you may be complicating the question. If becoming a Washington resident is your intention, I recommend you bring your pre-nup to a Washington attorney experienced in family law, and have him or her advise you as to your rights under Washington law. Generally speaking, legal pre-nup agreements trump state family law, but Washington may have different rules on this issue.
    0 Votes

  • 35x35
    Sep, 2009
    Lisa
    We live in Oregon and would like to buy a house in Washington. I am looking to get a home loan in only my name to take advantage of the first time homebuyer tax credit. The issue is that my husband currently owns (well, is paying the mortgages of) 3 houses already. My credit score is better than his, but he makes more money than I do. We have a pre-nup agreement stating what his before the marriage will remain his (including the 3 homes and all his debt) and what was mine, will remain mine. We have a joint checking account, but everything else is still separate. I saw that Washington is a community property state, does that mean they will need to consider my husband's income, debt, and homes? Or can I apply completely separate so they do not need to look at any of his financial info.? Thanks for your help and advice!
    0 Votes

  • 35x35
    Aug, 2009
    Bill
    I think you are making the process a little more complicated than it is. Always, always, always be forthcoming and honest when completing a loan document. The key indicator mortgage companies look for in a borrower is the debt-to-income (DTI) ratio. Let's assume you rent the condo and it is cash-flow negative. Even with that bleeding, if your household DTI is at or less than 35% you should be fine for the mortgage you seek.
    1 Votes

  • 35x35
    Aug, 2009
    Abe
    My wife has deteriorating credit due to our current home being in default and in the process of short sale/foreclosure. We could afford the payments, but can't rent it for close to the payment and now have two small kids in a 1 BD/1 Bath condo. My credit is good (750) and my income is about 2.5 times hers and sufficient to cover a mortgage loan. How do I fill out an application if I want to qualify using just my credit? When they ask whether I rent or own, what do I say? Technically, I don't own, because my wife bought this property before we were married (qualified on her own) and I am not on the mortgage or the deed of trust. Thanks for any advice!
    0 Votes

  • 35x35
    Jul, 2009
    Bill
    You have a couple of options, but really you should discuss your opportunities with your loan office and a few lenders to make sure that you get the best deal. Generally - if you apply together then they will look at your combined income, combined debt to income, and BOTH of your credit scores. If she doesn't have income, or you don't need her income to qualify, then you could apply without her (but decide on your own if you want her on title), and then not be impacted. Net-net: be sure to openly discuss your options with your lender. Good luck! Bill
    0 Votes

  • 35x35
    Jul, 2009
    RichardE
    My wife and I are planning on buying a home. I have excellent credit (780+) and good income. My wife doesn't have a credit history (recently relocated), and therefore, has no score. If we apply together (so she can be on the title as well as to consider her income), will her "no credit score" affect us - pull down my score and no longer qualify for the best rates?
    0 Votes

  • 35x35
    Jun, 2009
    Jane
    My daughter and her new husband want to buy a home, but his credit has been damaged due to a home he tried to short sell, the mortgage company messed up and the sale was lost so now the mortgage is in foreclosure. Her name is not on that mortgage. Her DTI alone would not qualify for a mortgage by herself. Is it possible for her to use her husband's income without putting him on the mortgage? Together they have a good DTI.
    0 Votes

  • 35x35
    Jun, 2009
    Bill
    That will not be possible, if the husbands income needs to be considered, it will have to be a joint application, and both their credit profiles will be taken into consideration.
    0 Votes

  • 35x35
    May, 2009
    Bill
    You will not know unless you apply with several lenders and see what the out come is, if the single income is not sufficient, they will let you know that it is better to apply jointly. In that case, you might want to wait till you resolve all the delinquencies or else you might end up with a higher interest rate. You can get matched with up to 4 lenders by using this form: https://www.bills.com/homeloan/purchase/
    0 Votes

  • 35x35
    May, 2009
    Andy
    I know this question has been asked in different forms, so I apologize for some repetition. My issue is as follows: I am married and my wife is the one with the good credit score, mine has some old debt back from school and hence the score is really bad. I've just started negotiations with the debtors so that I can have much of the interest waived, as I can pay the principle credit upfront. My income is higher than hers, but her income is good enough to get a decent mortgage. But we know we can afford a much better place if we combined our income. Would I run the risk of getting rejected if I include myself in the application? If I do get rejected, can I go back and re-apply in only my wife's name?
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    Yes, you can still get the mortgage in only your name. Keep in mind that income is a very important factor when it comes to mortgages, but looks like you had sufficient income to qualify for the first one, so I don't see why you should not be able to qualify for the refinance on your own as well. Make sure that you clarify this point with your future lenders, and get a confirmation from them beforehand, that your husband's credit will not be checked.
    0 Votes

  • 35x35
    Mar, 2009
    Mary
    I'm thinking about refinancing my mortgage. Right now the mortgage and title of the house is in my name only. I purchased the house in 2005 before my husband and I got married. I started to fill out a refinancing app and it's asking for copies of tax returns, which we file jointly. He has a discharged bankruptcy, which is why the house is in my name only. Can I be the only one on the mortgage, even if we have to show our jointly filed tax return? Thank you!
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    You have every right to exclude him from the mortgage, but remember that income is a big factor when it comes to qualifying for a mortgage and is the reason why most couples apply for one jointly. If you qualify for the mortgage that you need without your husband's help, then there is nothing to stop you from doing so.
    0 Votes

  • 35x35
    Mar, 2009
    Traci
    I am planning on getting married in approximately 6 months, and my soon to be husband has horrible credit due to a recent car repossession. If I'd like to buy a house after we get married (I have good income and credit)is it still possible to exclude him from the loan in the current economic climate? Or are lenders always going to look at both scores because we're married? I've been told various things due to the mortgage meltdown. Thank you!
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    The only way to take your name off of the mortgage is to refinance the home only in your ex-husbands name. If you did not want anything to do with this home, you should have sorted the matter during your divorce proceeding.
    0 Votes

  • 35x35
    Mar, 2009
    Jordan
    I recently got divorced (Feb 2009). I have been a stay at home mom (making no income) since before we purchased a home (my ex husband and I). We live in seperated homes in California (renting) and we own a home on Texas, that we are unable to sell. Is it possible to take my name off the mortagage in Texs? Or do I have to be resposible as well if we have to foreclose? I just want to save my credit.
    0 Votes

  • 35x35
    Jan, 2009
    Bill
    Be truthful on your application, lying on the application can be considered fraud.
    0 Votes

  • 35x35
    Jan, 2009
    Val
    So, if you're married but trying to exclude your spouse from the mortgage application totally, do you check off married, seperated or single on the application? If you check single do they look into that? I'm in CA
    0 Votes

  • 35x35
    Jan, 2009
    Bill
    Because of the current mortgage scenario all lenders are being extememly cautious in the way they give out loans. Although not a common practice, when considering joint applicants, lenders may consider the lower of the two scores. But, this may be lender specific as well. You will need to get competing scores from different lenders and see if they are following the same method in you credit assessment. You can use Bills.com to get free quotes from up to 4 lenders. The more lenders you speak with, the more informed you will be about the whole process.
    0 Votes

  • 35x35
    Jan, 2009
    Benjamin
    I am refiancing my house and I was really annoyed I am not getting the best rate. I have a middle score of 727. (Which makes little sence given the black magic the FICO uses, but that is another story). I need a 740 to get the best rate. My wife has a middle score of 747; however, since my credit is lower, my score would be used. My question is, is this typical?
    0 Votes

  • 35x35
    Dec, 2008
    Bill
    You could certainly use the in-law suite as rental income (you'll likely have to have a rental agreement in place to prove this) and many lenders will let you take your higher FICO score. Depending on lenders, your DTI could more than compensate for your credit score. In this market, however, most loans that are getting done are conforming or FHA, so look into those programs. Check out: https://www.bills.com/homeloan/mortgage_refinance/ to see if you qualify.
    0 Votes

  • 35x35
    Dec, 2008
    Scott
    My FICO rating is 672, my wife's rating is 762. We are similar in salary and based on the mortgage amount we need, we would have a very good DTI ratio. Is there any "legal" way to just have my wife on the loan, thouh she wouldn't qualify by herself unless some of my income was included? We have 1 other variable, the house has a "in-law suite" and my mother will pay a monthly amount. Could that amount be used towards my wife's income?
    0 Votes

  • 35x35
    Oct, 2008
    Bill
    This really depends on whether you reside in a community property state. If you do, then the home will definitely be considered as an asset that benefits the "community" and therefore your wife's creditors may try to collect from you based on it. That being said, creditor recourses vary from state to state, and it is not easy fro them to take your home away, no credit card company can do that. What they will get is a lien on your home, which means that if you ever sell it, they will have rights to recover their money at that point. Even that can only happen after they file a case in court and are successful in getting a judgment. You should try and enroll your wife into a debt settlement program. Try this company: www.freedomdebtrelief.com (1-800-544-7211), they will give you a free consultation on your wife's options.
    0 Votes

  • 35x35
    Oct, 2008
    James
    I am buying a house and I have an EXCELLENT credit. My wife has BAD CREDIT (annoying phone calls on a daily basis). If I (only I and not add her to the loan) apply for a home loan and become a home owner will those credit cards chase me for my wife's bad credit? Will they take our house away because of it? Thanks
    0 Votes

  • 35x35
    Oct, 2007
    Ken
    Is it possible for a homemaker wife, no income, to apply for a home mortgage by herself but use the income from her husband? The reason for this arrangement would be to take advantage of the wife's good credit and exclude the husband's bad credit.
    0 Votes

  • 35x35
    Oct, 2007
    Bradford
    That's a good question... but the bad news is that it is very unlikely that this would be successful in the current lending environment. Lenders won't let you match the 'income' from your husband and the 'credit' from you. What they will do is to take both of you as joint applicants... but if he is the wage earner his bad credit will harm you. The way people did this in the past was by literally fabricating their income with stated income loans (where you would say that you make your husband's income... or even more!) They are frequently called 'liar's loans' but they aren't too well embraced in this lending environment for obvious reasons.
    0 Votes