Re: Getting a VA Loan with Veteran spouse with bad credit[ Edited ]
11-11-2012 11:48 PM - edited 11-12-2012 12:00 AM
Tahul, unfortunately va mortgage benefits aren't transferrable. If you're not a vet yourself than her name will have to be on any va mortgage. Do you know her current score? Also, you said you'd be willing to put down 20%. With 20% down, you could just use a conventional mortgage. I also believe it depends on the state whether both spouses have to be on a mortgage. In many states, its fine to have only one spouse on the mortgage, but there are some that require both spouses, so thatmay be worth some research on your states rules. Also, different rules may apply depending on whether its a primarary residence, a summer house or an income property. (But since you are talking about fha snd va loans, i'm assuming you're talking about a primary residence).
In community property states you can keep the spouse off the loan, but they have to sign a quit-deed before the loan will fund (I'm going through this right now). However, their monthly payments on their credit will count towards your DTI, but their negatives (collections etc) won't,.
As far as convetional I would agree... you don't have to pay the VA funding fee w/ a conventional, plus if you're putting 20% down you wont' have PMI, which is one of the main reasons to get the VA loan.. also you don't have to go through a VA appraisal (they are sticklers, and there's a list of reasons they won't approve the sale).
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