We currently own a home and currently have it listed for sale. We plan to rent for a year and during that time build our dream home. We will be putting 5% down and applying for a VA Loan (our current home is financed with a VA Loan). We will have $50k saved by the time we close on the new house for downpayment, closing, and reserves.
My husband works and I do not. My husband has about a 720 credit score, where mine is about 650. I have 2 Charge Offs on my credit that are going on 4 years old. They are quite large, >$10k each. The statute of limitations for a judgment is 4 years so I am hoping to clear that hurdle in the next few months. By the time we finish building the new house the COs will be 5 years old. In Texas, judgements don't affect your primary residence as long as you have a homestead exemption on it, so I don't see why having a judgement would matter anyways. The charge offs are from when I lost my job and had medical issues. There are no other credit issues on my credit report.
My husband is certain that we can finance the new house under just his name/credit and I will be on the deed only as Texas is a community property state. My question is, is he being reasonable, is there actually lenders out there that would not look at my credit or just look at my credit to make sure title would be safe? We would not be able to afford to pay off the charge offs and frankly I don't want to reset the clock on these. My husband is very optimistic about this situation, but I am a very worried. Any and all insight and opinions are welcome.
