Quick FHA ?

[CLee]

1st - Thank you guys for some great info....I have read numerous FHA related posts on this site, and I understand that you will need three current trade lines, among other things, to be approved. I have relatively good credit (730, 728, 732) scores; however my wife does not. As of fall 2007, her mid score was 575. I need her income to qualify for the loan amount that I want, which-roughly 350k. My question is: can FHA requirements use three or four of my tradelines, which are all on-time for well over the 12 month criteria or will they want to see a combination of both hers and mine? We have recently married, and I just got her on the right track about 7-8 months ago now that we are under the same roof. My concern is that, if they need tradelines from her, then she would probably only be able to show a positive payment history for rent and we wouldn't qualify. I make 75k a year so i need her on the application.

[Anonymous]

Well our mortgage person wants us both to have tradelines which is a problem since my credit is worse than my husband...Also they told us that they will take the middle score of the person who has the lower scores...dh and I make about the same amount per year so I don't know if that has anything to do with it. Hope this helps.

[CLee]

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@Anonymous wrote:
Well our mortgage person wants us both to have tradelines which is a problem since my credit is worse than my husband...Also they told us that they will take the middle score of the person who has the lower scores...dh and I make about the same amount per year so I don't know if that has anything to do with it. Hope this helps.

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Thanks Wildcat. How are your guys managing this situation? Showing traadelines for each person sucks! I want to do new contruction so i need to get this done by July. I will not give a builder a deposit not knowing that my loan is fully approved. Any suggestions of how I can make this work? Will they take her rent, Direct tv and comcast highspeed bills as tradelines? Those are probably the only three bills that I could show + positive history for her because I assumed responsiblity for them when moving in. Her cc's are paid off, but she was late/over the limit in Nov07' due to a medical issue.

[Anonymous]

If she has any utility bills or phone bills in her name they may possible be able to use them.

[Anonymous]

The hardest part in qualifying two individuals such as this with differing scores makes things hard...  I'll try to answer these as best I can from personal knowledge (Loan officer at a bank.)

1. Yes you both need credit lines.  If she doesn't have any, add her as an authorized signer on your best paid, longest history card and wait for it to hit her bureau, now she'll have the same history you do for that card giving her a nice bump.

2. I take it you are the primary financial provider, her income is just a perk?  If this is the case, the loan is weighed more on your score than hers, although you may get a slightly higher rate due to that, it will be weighed higher on your shoulders than hers.

I hope that helps, if you have any other ?s please fire away.