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Wife Applying for Home Loan By Herself, Using Both Incomes????

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jezedam
New Member

Wife Applying for Home Loan By Herself, Using Both Incomes????

Hi,

My wife and I have been trying to buy a home for a while now. While my wife's credit has increased significantly, mine seems to be stuck about 80 points short. Her score has reached a point where she would qualify for a home loan. Is it possible for my wife to apply for a home loan by herself, using her credit score only and both our incomes??? I am a little desperate, looking for any way around this situation. Any input would be greatly appreciated....

 

Thanks,

Jezedam

Message 1 of 11
10 REPLIES 10
JagerBombs89
Established Contributor

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

Me and my wife ended up doing this. She was considered a "non-purchasing spouse."  Since her scores wouldn't have qualified us, they used my scores alone but considered both our incomes.  Maybe it depends on the lender you use?

Message 2 of 11
purseman
Valued Member

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

Hi JagerBombs89,

 

What type of loan did you get approved for?

Message 3 of 11
JagerBombs89
Established Contributor

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

 


@purseman wrote:

Hi JagerBombs89,

 

What type of loan did you get approved for?


We got approved with a VA loan.

 

Message 4 of 11
Anonymous
Not applicable

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

No, they will nto count her income.  What the above poster is talking about is compensating factors.  If she was to go on the loan solo but it would put her DTI a little high (say under 50%, but iover the normal 41-43% maximums), then they may allow the loan with reasoning something like: solid work history and income from non purchasing spouse.  The income is not counted as part of the loan or towards DTI, but it does allow them to "consider" it if they are borderline on approving or denying.  Usually for every negative factoe (say high DTI), they want to see a couple compensating factors to overcome it.  If you are running high DTI, compensating factors they would likely like to see would be reserves, solid employment history, income from non purchasing spouse, and similiar rental payment (not payment shock).  Not to say that all of these would be required, but the more you have the better.  Picture your file as being on a scale with the good on one side, the bad on another, and all the mundane stuff int he middle.  The good has to outweight the bad. 

Message 5 of 11
jezedam
New Member

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

I know I am probably reaching, but if they won't consider my income, then they shouldn't consider the xpenses to be hers. You know what I mean? All current household expenses will fall under my income and then she would have plenty of wiggle room to qualify for loan. The only things that should count towards her DTI would be debts under her name. That would make sense, no?

Message 6 of 11
Heavanly1
Regular Contributor

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

Any expenses related to the home (property taxes, homeowner's insurance, etc) and debt listed on her credit report (even if they're joint accounts) will be considered hers because in the event that you can't pay them, she'll be responsible for them.

 

All of these will be factored in to her DTI and determine the amount of home she'll qualify for.

 

If you both feel that this isn't enough money to buy the type of home you're considering, your other option is to hold off on purchasing the home until you can get your scores up.

Message 7 of 11
jezedam
New Member

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

I understand that completely. But my point is that if she applies for the loan by herself, knowing that there is a second income coming in, how can they not consider it. And if they don't, then the only things they should apply to her DTI is P&I, Insurance, taxes and any other debts on her credit report, but not additional expenses which would technically be paid for by the second income. I am just trying my best to get around this crap. We are financially more than capable of buying, but the only thing holding us back is my credit score. Which I have tried everything possible thinkg and still won't increase signifcantly. Has anyone been in this situation, where their partner has been able to qualify for a home loan.

Message 8 of 11
Mark_in_Pasadena
Regular Contributor

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

 


@jezedam wrote:

 But my point is that if she applies for the loan by herself, knowing that there is a second income coming in, how can they not consider it. ... We are financially more than capable of buying, but the only thing holding us back is my credit score.


 

Your credit score is currently contradicting your assertion that "you are financially more than capable of buying."  Your wife is, not you.  Your credit score is saying that you haven't yet proven yourself financially capable of managing your debt.   What has changed since the time when you messed up your credit?  What's different now vs. then?  How long ago since you started rebuilding your credit & when was your last "baddie"?

 

Until you get your credit score up, your income won't be counted on your wife's loan, period.  Have you gone to the "rebuilding your credit" forum here and tried to do everything possible to legally clean-up your credit? If you're still 80 points away from a 640 credit score, then there's still a lot that can be done (PFDs, goodwill letters, HIPAA process, etc).  If not, then you just need to let time heal your credit mistakes of the past and apply later.

Message 9 of 11
jezedam
New Member

Re: Wife Applying for Home Loan By Herself, Using Both Incomes????

What I meant by "financially capable", was that we can afford to buy a house. Meaning we both make enough money and have the savings needed to buy a home. Obviously, my credit score is not where it needs to be and that is the frustrating part. Many people don't make enough money or have enough savings to go ahead with a purchse, but we do. Only issue is my credit score. I will look into the forum you suggested and see what else I can do.

My basic question was as follows:

Let's say my wife makes $45,000 a year and her credit score is where it needs to be. If she were to apply for a, let's say $190,000 home loan will she be able to get it? I would assume that if they took ALL of the expenses of owning a home and made them her sole responsibility, then she probably wouldn't qualify, but if they assume that some of these expenses (not including P&I, insurance and taxes) are actually paid by an additional income (not hers), that it may be possible. That is my question. If she applied for the loan all by herself, would they assume that ALL expenses are hers, even though they know that there is an additional, let's say $60,000 of income in the household?

Message 10 of 11
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