10-05-2012 07:13 AM
My husband and I are trying to figure out if we should apply for FHA together, or if I should do it alone.
He had his student loans go into default while he was unemployed during the first half of 2010. They were in default for 1-2 months. Since that time he has been paying them properly with no more lates. How would that affect our application? Would it be better if I applied alone? I know I could be approved on my own, but I would like him to be involved if he can.
10-07-2012 11:02 AM
Just a few things to keep in mind.
1. Your husband does not have to be on loan, he can be on Deed for home ownership.
2. Applying by yourself gives your husband time to age his lates and rebuild his credit.
3. If for some reason problems arrise later down the road and you will be forced to sell or foreclose on home you can reapply for a new loan in husbands name only.
Also agree with statement above, FHA needs lates to be older then 1 year (12 months), their are few exceptions to this rule but very few. Your situation is older then 1 year (12 months) so I do not see that as a reason for denial.
10-07-2012 07:00 PM
+1 The lates are more than a year old. What are his scores? Are they good enough? What's your DTI? Is yours good enough without his income? Just some things to look at. Good Luck!
10-08-2012 10:55 AM
Ok so here is some more info I was able to get. He has 8 total student loans. They all list multiple 30, 60, 90, and 120 day lates on his credit report. The last ones on each are from 4/2010. Since then they all are green and say current/closed. He consolidated them all into 2 loans about a year and a half ago and those are in perfect standing.
Our combined DTI is 27%. My individual DTI is 23% and one of my scores is 649. His DTI is around 30% and one of his scores is 626.
We plan on buying in 6 months.