buying a home

[Anonymous]

hello...im new to this forum and need some help. i plan to buy a house this year but have an old repo from 2011. the current status is a charge off. i have some 3 credit cards that i will be paying off as soon as i get my tax. what can i do with the repo?  its set to fall off in 2017.  other than that i dont have anything else on my credit report.  Also, my wife just got a medical judgment against her.  She has a car under her name, a few credit cards and this new judgement. i was wondering if there is a possibility that i could apply for a mortgage on my own or will she need to be added on since we are married? any advice will help. thanks.

[cartwrna]

You can apply for the loan independently as long as your not located in a community property state. The only downfall is if your wife works, you can't use her income towards qualification without her being on the loan. Which the judgment makes it so she can't anyhow.

[Anonymous]

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@Anonymous wrote:

hello...im new to this forum and need some help. i plan to buy a house this year but have an old repo from 2011. the current status is a charge off. i have some 3 credit cards that i will be paying off as soon as i get my tax. what can i do with the repo?  its set to fall off in 2017.  other than that i dont have anything else on my credit report.  Also, my wife just got a medical judgment against her.  She has a car under her name, a few credit cards and this new judgement. i was wondering if there is a possibility that i could apply for a mortgage on my own or will she need to be added on since we are married? any advice will help. thanks.

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Your repo might not really matter to the lender if it is due to fall off next year. The only negative that I had was a bank account that was charged off and due to fall off in 2017. I was never questioned by our loan officer, loan processor, underwriting, etc. I never even had to provide a letter of explanation for it. If you have not had any negatives on your credit report since the repo, you should be fine. Regarding your wife's judgement; If you can afford to apply on your own, then that is always an avenue that you can take. I'm not positive on this, (maybe the experts can chime in), but I have read that in certain community property states, they will have to run your wife's credit as well, even if she will not be on the loan. I would check on that. Like I said - i'm not positive that is the case but I feel like I have seen that rule before.

Best of luck!

[Anonymous]

my wife does not work and we live in washington state.my monthly income is about $3500 and our combined monthly expenses total to $700. would that be enough to qualify me for a mortgage?  Also, since we are married will my wife's judgement show up on my credit reports too? and will that effect my chances at getting a loan?

[cartwrna]

That income will qualify you for a mortgage. Your wife's judgement will not show on your reports, unless it's a joint judgement OR they go after you do to unfortunately, Washington is a community property state. The issue you will run into is that even though she may not be on the mortgage, legally they can/will still pull her credit due to any debts she has will be used against your DTI and in the qualification for sole reason you are in community property state.

[Anonymous]

so would it be best that we pay off her judgement before i apply for a loan to lower our dti? or does that even matter. that would be the only negative on her credit report. her judgement is medical.

[cartwrna]

You will need to pay the judgement off and get it released prior to being able to be approved for a mortgage. FHA also allows you to make payment arrangements and you have to make x amount of payments before being approved, some lenders may have overlays to this though.