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Valued Member
Posts: 65
Registered: ‎12-15-2012
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UPDATE 1/11/13 Any sucess stories with FHA and a non-purchasing spouse?

[ Edited ]

Current scenario-

  • I'm pre-qualified for FHA loan in my name only.
  • Spouse owns our current home and is about 6 months behind on an underwater mortgage.
  • We are NOT in a community property state.I am not on mortgage or deed.
  • My credit is decent (670)
  • My only debts are deferred student loans. I have a past BK but its over 3 yrs old & LO says no problem there.
  • I paid off two auto loans this year.
  • I have more than enough saved for down payment in a savings in my name only.
  • Making an offer this week on a home that is well within my means

I am just super nervous about my spouses credit issues killing my chances. I have researched it, and from what I can tell it shouldn't be an issue since we are not a community property state, but in the end isn't it up to the underwriters whether or not they will give me a chance? Do I have to disclose his problems? The bottom line is even if he were completely out of the picture I can afford this new mortgage on my own, I'm not asking to include his income and I am not attached to his debts, so I'm hoping the UW's will not give me grief about him. Does anyone whose been throuh this have a story to share? I am making myslef a nervous wreck woorrying about it.

 

Established Contributor
Posts: 619
Registered: ‎09-26-2011
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Re: Any sucess stories with FHA and a non-purchasing spouse?

I did FHA on my own with a non-purchasing spouse. They did not look at his income or credit at all and had him sign a POA for me to be able to sign some of the docs at closing (we live apart). Once I got past a few hiccups in our unique situation, it was fairly easy.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Valued Member
Posts: 65
Registered: ‎12-15-2012
0

Re: Any sucess stories with FHA and a non-purchasing spouse?

[ Edited ]

Latest Update.

Things all seemed pretty positive. My offer on the home was accepted and the list of things the lender wanted were all pretty easy, I have put down my earnest money, things were humming right along, until...

 

Yesterday my husband received his complaint for foreclosure. What worries me is they apparently do not have the latest information, because they list me as a defendant with interest, citing a deed that I used to be on for this property. I am NOT on the deed anymore, I quit claimed my interest several months ago, they just apparently didn't know that when they filed the complaint. I have drafted a letter of dispute with a copy of the quit claim to have my name removed from the suit, but I am now VERY worried this will throw a wrench in my new mortgage. I am not worried about liability for the foreclosure, I am not named anywhere as the debtor, and all the loan documents were  signed only by my husband, so its not my credit I'm worried about, but I am worried about being named as a party in the suit.

 

I emailed my loan officer last night and explained it to her (she already knew about spouse's foreclosure, but I  had initially told her I wasn't a party to it, and I SHOULDN'T be if they had the correct deed info).. I am hoping the worst that will happen is they will want a letter of explanation & copy of the Quit Claim.

 

 

Any thoughts? Advice? Reassurance??

 

Valued Member
Posts: 65
Registered: ‎12-15-2012
0

UPDATE 01/11/13

I can now answer my own question....Got my appraisal results & conditional approval today!

Appraisal was fine, nothing to fix there. Only condition is an easy LOE about bank deposits.

I am SO STOKED!!! They said once I turn those in we will get a closing date.

 

So for anyone out there worried about it, YES YOU CAN get approved on your own when your spouse has bad credit or even a foreclosure ( I will add that I am NOT in a community property state, if you are then it may not be as easy as it was for me...)

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: UPDATE 1/11/13 Any sucess stories with FHA and a non-purchasing spouse?

Congrats! I am so happy it is all working out for you!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

Re: UPDATE 01/11/13

Your almost there, congrats on your hard work.

Good Luck
May all your dreams and wishes become a reality!

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