My husband and I are considering applying for a mortgage next month. First time homebuyers with some shaky credit history. I feel pretty good about most things on our credit now except for about $4,000 worth of back-owed child support that is on hubby's credit that shows as a collection. For several years he has paid more every month (and still is) to pay it down and there is no way we will be able to wipe it away before applying. He has a very low credit score (510 or so) mostly because I think he has very little credit. He has never had a loan or credit card, ever and only has an installment account for a TV, two collections (paid) and the child support thing. My credit is in much better shape after spending a year of paying things off. Credit score about 630 for me. We gross about $6,000/mo have DTI about 20% and are looking for a loan under $90,000. We live in Michigan. What are the chances we will get approved for an FHA loan with the child support debt looming? Would we have a better chance with conventional?
Thanks for any advice.
Minimum FICO for FHA is 620. You won't be able to get a loan with your husband if his scores are in the 500's.
No minimum score but 620 is recommended:
Because almost every lender requires 620..... regardless of what dpa or fha wants
You need to get him some credit. Maybe add him as user on your credit cards? <= this is only ethical if he is financially responsible for those debts.
fha doesnt specifically address the child support. but if it is being paid ontime for several years then it shouldnt be a problem.
the problem is scores.
time to establish credit for a whi;le and see what happens to scores.