Profile picture for stoesaing

Can I qualify for FHA loan even my wife credit score is not good?

I am first time home buyer and plan to buy a house with my income alone. But my realtor told me that my wife bad credit will effect to my FHA loan because we applied for joint tax return. It is true?
  • January 28 2011 - West Covina
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Answers (16)

Profile picture for fbarajas310
I have a question as we'll my wife just signed the closing the documents I am not on the loan but it is FHA and were in California I had to pay for some collection accounts but I just got a new collection on my credit report will that affect the funding??
  • September 06 2014
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What is her credit score? There are FHA loans available that requires scores as low as 550. To get approved for an FHA loan there are qualification criteria of which the score is one. I advise you to talk to a broker who has FHA loan products that require low credit scores and can advise you based on your specific situation.

I recently closed a couple of FHA loans where the credit scores were close to 550, if you have any questions please feel free to contact me.
  • July 16 2014
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Profile picture for juancross2014

BE AWARE of Qualify Me Australia Review

Hey guys, this is just to inform each and everyone BE AWARE of Qualify Me Australia

I've been duped by this agency. I applied last year and based on their assessment I was qualified… I gave all the requirements needed.

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Is this part of their business? Or strategy? Of getting income, just to fool applicants to sign the application and after that ask to cancel the contract so they could TAKE MONEY From us?

—Abby Brise

  • July 13 2014
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  • January 25 2014
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  • February 21 2013
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Profile picture for djhuga
Debts for non-purchasing spouses are included only in "community property" states such as California, Texas, Arizona, etc..
  • February 20 2013
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Stoesaing, The short Answer is no they won't care about her credit and yes they will count her seperate debt against you.
  • March 05 2011
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Agree with Christopher, Wayne & HUGD below.

FHA allows you to use your income only but will include both you and your wife's debts in the Debt to Income ratio.  Make sure their aren't any negative credit items on either of your credit reports.
 
Good luck.
  • March 05 2011
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No.  Is it possible you misunderstood?

  • February 09 2011
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Profile picture for Chris Starke

Yes you can qualify for a FHA loan even if your wife's credit score is not great. You will want to plan on counting her debts against your debt to income ratio but her score will not affect your ability to qualify for the loan.

You should also go over her credit report with your lender. There may be some simple things she could do to raise her score and qualify with you.

  • February 09 2011
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Does you wife work? If she does, the higher your joint income, allows you more options when you start looking for a home. Sometimes a low score can be improved in a matter of weeks and sometimes days. I would be happy to discuss this with you in detail.

Happy funding, Rudi
  • January 29 2011
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I think the best place to start might be with a local lender who does FHA loans.  And if you have Rural Development loans in your area, inquire about those too.  You might find out that you can buy right now, and it's essential to start off with a good pre-approval. And if you can't get a decent loan right now, have the lender give you specifics on what it would take for you to get approved.  Also, you might want to check out www.homesahead.org.  It's a great organization; I know lots of buyers in my area have had great success with it.
  • January 29 2011
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Your wife's credit score is not a factor but what is on the credit is.  If she has any debt that is not listed on your credit report it will be counted against your debt to income.  Also if there are any judgments or liens on her credit that can also potentially be a problem.  The fact that your file a joint tax return makes no difference one way or the other.  There is a real simple quick solution and that is have a mortgage professional pull her credit and see what items may be a potential problem in terms of you qualifying for loan.  If you have be pre-qualified and your current lender has not looked at your wife's credit, I suggest finding a new lender that is pretty basic procedure in a community property state.  If you have any other questions or concerns feel free to contact me.
  • January 29 2011
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California (as is Texas) is a Community Property state and HUGD gave you the correct answer, which is why in your case comparing a conventional loan to FHA would be good option. Conventional financing does not require non purchasing spouse's debt/credit to be considered.
  • January 29 2011
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No it's not true. Your wife's credit will not be used if you can qualify on your own. If she has debt that is separate from yours, then that will be included in your debt ratio, but her credit will not be.
  • January 28 2011
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It may be true. You may not have to use your wife's debts or credit when qualifying, and HUD instructs lenders not to deny credit for a non-purchasing spouse's credit history, but HUD does require the lender to pull the spouse's credit report and at least look at it. It really depends on what is on her report, the underwriter would then have to decide if any of her debts must be included in the debt-to-income ratio and if your loan is still eligible to be insured by FHA.

Unfortunately it's not a one-size-fits-all answer and it really depends on a few factors.

-Greg

  • January 28 2011
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