If DH Is Not Applying, Why Do We Have To Explain?

[Anonymous]

I got an email from my mortgage broker today with conditions from the UW.  Now keep in mind only I am applying for this mortgage.  Hubbys credit was ran to make sure we didnt have any other loan obligations, etc which I understand.  So we are told we need to pay off an $800 judgement from over 3 years when we weren't married and lived in a different state.  Told they could put a lien on the house.  Ok.  It really sucks but ok.  So tomorrow I get to drive 3 hrs to Reno to pay the loan sharks because they wont take a debit card over the phone.  Then they have to file a Satisfaction of Judgement and hopefully that will be next week.  I wont get my hopes up. 

Additionally, we have to explain all the derogatory things on his CR.  There are TWENTY of them!  This is the reason we didnt add him on.  They were all from before we knew each other.  What the heck?

Ok, so what kind of things do we write?  I'm thinking along the lines of "I was young and didnt have medical insurance."  "I didnt pay it because I was 24 years old and wanted to spend my money on my motorcycle"  " I was laid off and didnt have the money to pay" 

Can you use the same reason for many items or would they all need to be different.  I dont want to be dishonest at all, but my hubby had a gambling problem back then (reason we don't live in Reno anymore, lol) and he has some debt residue from that.  Do we tell that to the UW?  I dont want to get denied because we had credit issues in the past.  Last 2-3 years have been perfect and wouldnt my broker have said something to me 3 months ago? Is this just a formality so they have something to put in their filing cabinet?

[Anonymous]

Are you going FHA.

If so, your LO/UW are one of 2 things...

putting your husband on the loan

Or being totally stupid.

It is very clear thatthe non-borrowing spouse provisions mean that debt has to be added into DTI, but DTI is THE ONLY thing that they can factor his debt on.  They can't use credit history, credit score, income, job history, etc.  In other words, they are making a mess of this.  Alot of LO's and UW's get confused if they do not do these type loans regularly.  As a matter of fact, seeing how the loan is in your name, you do not want explanation lettes that have nothing to do with YOUR credit in the file.

[Anonymous]

Are you going rural housing? My wife and I are purchasing a home, but she is not on the note because her credit is messed up plus she was laid off from her last two jobs and doesn't have the stability, howver, the LO requested all of her info as well...come to find out this stupid loan is all based on household info. I did ask her if we were to go FHA if her info would be needed and the LO said NONE of it would be needed.

Maybe that's it?

[WannaHouse]

---

@Anonymous wrote:

Are you going FHA.

If so, your LO/UW are one of 2 things...

putting your husband on the loan

Or being totally stupid.

It is very clear thatthe non-borrowing spouse provisions mean that debt has to be added into DTI, but DTI is THE ONLY thing that they can factor his debt on.  They can't use credit history, credit score, income, job history, etc.  In other words, they are making a mess of this.  Alot of LO's and UW's get confused if they do not do these type loans regularly.  As a matter of fact, seeing how the loan is in your name, you do not want explanation lettes that have nothing to do with YOUR credit in the file.

---

I agree with Mickie.

[Anonymous]

We are going FHA.  I overnighted a USPS money order to the creditor in Reno, the lady there was very nice on the phone and said she file the Satisfaction of Judgment right away.  But it's really nervewracking to have to explain all of DH's stuff.  He has one collection for 10K from an old house he rented years back with roommates that got torn up in the end even after he had moved out.  This one they especially want to know what happened because it is housing.  But his name was still on the lease so it went on his credit.  There's so much stuff on there.  I just hope we dont get denied the loan because of his CR.

[Anonymous]

BTW, I'm sure they're not putting him on the loan.  He's unemployed right now and his mid score is 557.

[ShanetheMortgageMan]

What lender is this may I ask?

[Anonymous]

The lender is "America Home Key which is a wholesale lending institution".