Reply
New Visitor
Posts: 1
Registered: ‎02-21-2014
0

FHA and non-borrowing spouse's credit profile

Hello All,

 

Great board with fantastic information!  Been a lurker for quite some time, and finally have a need to post.

 

We are looking at buying a home.  My wife and I went through both of us getting laid off in 2007.  For 19 months we went without income.  So, we stretched and used credit to live off of.  Stupid I know.  We ended up not being able to pay.  So, we had significant charge offs.

 

Now, most of my issues are cleared up (paid but still showing), but a couple charge offs that are 5 yrs old.  With my credit score at 630 I was hoping to look at FHA.  We are in Texas, and understand my wife has to be a part of the process even though she is not working.  I looked at her credit, and one of the debtors, CITI, is nowhere to be found on her reports.  This was our biggest debt of 25k, and assumed it was charged off.  I do find Asset Acceptance Corp as the collector on her report.  The acct reads as CITI-1234.  Does this mean I should assume the debt was purchased from this group therefor denying any opportunity to purchase under FHA unless we pay/settle this debt?

 

I'm at a loss of how to interpret.  Thank you for any direction you may provide.

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: FHA and non-borrowing spouse's credit profile

We did a non-borrowing spouse FHA loan in Texas. They took used only my credit score, but they counted her debts against my DTI.. Her collections which were BAD they completely ignored.

Super Contributor
Posts: 8,360
Registered: ‎09-28-2007
0

Re: FHA and non-borrowing spouse's credit profile

It won't be an automatic decline, but her owing collection account will play a part in you qualifying.

 

Read http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-changing-collection-account-judgments-amp-dispute... about the part on capacity analysis.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.