Profile picture for JesseJenniferTolley

Does my wife have to be on my VA loan?

I live in California. I finally got my credit score high enough to get approved for a loan. With a VA loan does my spouse have to be on the loan with me? If so, will her collections make it a deal breaker? Other than her collections she has no monthly bills and works two jobs.
  • June 12 2014 - San Diego
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Answers (9)

Hi Jesse, to simplify a response, if you need your wife's income to qualify for the VA loan, then yes she would have to be included on the loan. If your income is sufficient and do not include your wife, then her debts would still need to be included in your DTI because California is a spousal state.

What type of collections does your wife have? How old are they? Do they still show as past due on her credit history? I am happy to provide advice and direction of bettering her credit situation. Please feel free to reach out to me.
  • July 22 2014
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VA or CalVet loans are not fico score qualified loan programs although many lenders have their own bank overlays and many require a minimum 640 fico score. As a mortgage broker with banks that approve low fico scores loans. Collections can become an issue with VA but CalVet is a little more lenient. It only takes a few dozen questions to qualify and go over issues. Credit scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary.

It will ultimately be determined by your credit profile, debt to income ratios, credit issues, late payments, collections, etc. 
  • June 15 2014
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Hi Jesse,
You have some really great advice below. It sounds like your best bet will be to speak directly with a lender who can pull all of your info and let you know how your wife's debts will affect your ability to qualify (although I agree, it sounds like you best course of action is to not have her on the loan.) I would be happy to recommend a lender that I work with regularly who can walk you through the process. Then, once you get everything sorted with the financing, we can go house-hunting. Don't hesitate to contact me if you have any additional questions.

Thanks!
Sinead
  • June 13 2014
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Profile picture for PaulMcCausland
Hello Jesse, it looks like you're getting some conflicting info here.  In your last post, you mentioned that it would help to have her be on the loan.  On a VA loan, or any loan for that matter, it's someone's income is going to be used so is their credit.  You also mentioned that her credit score wasn't high enough so I don't see how it's going to help to have her be on the loan.  In a community state, her debts WILL come into play and WILL count against you from a debt to income ratio standpoint.  Your concerns would be best served through a telephone conversation.
I'm here to help,
Paul
  • June 13 2014
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Profile picture for GMerino

That is great and thank you for your service! 

When you connect with a loan officer to do your qualification in that process your credit scores will be pulled and submitted instantly to the AUS system, which will give us a guide as to whether your file receives an approve eligible/approve ineligible/ or a refer/eligible and so on.  If your file receives a refer/elibile then her derogatory collections would need to accompany a letter of explanation as to why those collections occurred. 

It would be wrong if I told you that this would pass with flying colors but nothing days is a walk in the park.  In my experience a letter of explanation would satisfy underwriting.  

You should connect with a loan officer to go over your pre-qualifications.


  • June 13 2014
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the community property state stigma is where it comes into play...she does NOT need to be on the loan..but her bills can come into play.....thanks for your service, and all the best to you!!! get witha  true loan pro, as it does appear u will have some "options"

randy
  • June 13 2014
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Profile picture for JesseJenniferTolley
SO after some research, and correct me of I am wrong. None of her collections were after we got married. All of her debt was before. So the debt/collections will not matter? Right now she has zero opened accounts. No credit cards no loans. SO if this is correct that means she can only help in the loan because we are counting her income. I know her score isn't good enough. But that doesn't matter because she isn't on the loan. 
  • June 12 2014
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Profile picture for USMortgageRanger
Thanks for your service to our country from one veteran to another. The VA loan guidelines call for a full credit report on the none borrowing spouse even when she will not be on the application. The good part is that her income will be used to offset any debts. In a community property state as CA her name will appear  on the deed. I am available for a free no obligation consultation.   
  • June 12 2014
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She does not have to be on the loan with you, but because California is a Community Property State, VA will require her credit report to be in the loan file. Her scores do not have to qualify, they will just account for any open and active debts in her name that do not show on your report, so if she doesn't have any it shouldn't impact anything. You shouldn't be required to pay of the collections with a VA Loan. I am in San Diego as well. If you need any additional help or have further questions, my contact information is available on my Profile. All the best to you!
  • June 12 2014
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