topic Re: Scared Straight in Mortgage Loans

Scared Straight

jadeite788 — Fri, 08 Feb 2013 18:18:35 GMT

I am so scared now. I sent my LO my documentation, and my credit report and credit score from last week on February 1, 2013 so she can see the information without doing a real pull yet on my credit report. She is already asking me about my deferred student loans and when the deferment is up. She also asked me about my husbands credit score. I told her straight up it was ugly, he doesn't have a bank account. But he is currently work again. She told me he would not be on the loan, but they still need to determine the DTI. This sucks...

Re: Scared Straight

Anonymous — Fri, 08 Feb 2013 18:29:32 GMT

Are you in a community property state? If so, then they do need to see your husband's credit report to see what debts he may have on his name only, but they will be factored into the DTI even if he is not on the loan.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 18:34:46 GMT

I am not sure, I think Texas is community property. His debts occurred before we even got married. which was almost 5 years ago. So is that bad or good for the DTI. All I know is he has 2 public accounts from apartments and a payday loan.

Re: Scared Straight

playboy — Fri, 08 Feb 2013 18:43:28 GMT

@jadeite788 wrote:
I am not sure, I think Texas is community property. His debts occurred before we even got married. which was almost 5 years ago. So is that bad or good for the DTI. All I know is he has 2 public accounts from apartments and a payday loan.

TX is a community property state. You can figure out your front end debt to income (expected PITI/monthly gross income) and your back end debt to income (all debts + PITI/monthly gross income). If your husband's debt is going to be added into the equation, it could be a bad thing or it may not even affect you that much as far as the DTI is concerned.

Re: Scared Straight

Anonymous — Fri, 08 Feb 2013 18:44:10 GMT

Texas is a community property state. It doens't really matter when the debts occured, once you got married, you are both responsible for them which is why it counts toward your DTI even if he is not on the loan.

Tooleman is also in Texas and went through a similar experience, maybe he can share some insight.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 18:56:31 GMT

my dreams have slipped away.

Re: Scared Straight

raisinitup — Fri, 08 Feb 2013 19:20:55 GMT

@jadeite788 wrote:
my dreams have slipped away.

Aww, don't feel that way. I have learned that there is always a tomorrow and where there's a will there's a way. Work with that payday loan and that apartment complex to get those things PFD. You have all the leverage since they were pretty much getting nothing before this. They only look at the last year if you're doing FHA so five years may not be so bad. It may not be the first LO you try but someone might be able to get it done for you guys.

Someone mentioned community property vs non community property state. We're not planning on putting my husband on the loan either and FL is not a community property state. Does that mean they'll still look at his credit ?

Re: Scared Straight

Anonymous — Fri, 08 Feb 2013 19:26:55 GMT

Kmathies, I just bought my home in Indiana which is NOT a community property state, without my husband on the loan. They did not look at his credit, income, or even ask so much as his name. If Florida is not a CP state you should be fine.

Re: Scared Straight

raisinitup — Fri, 08 Feb 2013 19:38:13 GMT

@Anonymous wrote:
Kmathies, I just bought my home in Indiana which is NOT a community property state, without my husband on the loan. They did not look at his credit, income, or even ask so much as his name. If Florida is not a CP state you should be fine.

Thanks BetterHalf, I had never heard of such before but it's good to know. I think that's the whole reason why some people don't put their spouse on the loan, because they have credit issues, etc. Just sounds backwards, especially since the baddies occurred before they were even married.

Re: Scared Straight

Anonymous — Fri, 08 Feb 2013 19:41:35 GMT

Following states are Community Property states.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 20:00:14 GMT

Well I have not heard back from the LO, I called twice to see if my husband is needed. I have not gotten a call back.

Re: Scared Straight

tooleman694 — Fri, 08 Feb 2013 20:06:03 GMT

I am in Texas, doing a non purchasing spouse FHA loan.

They calculate the DTI based on my debts plus her debts against only my income.

The only way around this is to go conventional. Then they only use your debts and not the spouse that is not applying.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 21:36:14 GMT

Thats the thing I feel like I am being faulted for his mistakes.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 21:37:58 GMT

Well then I would not qualify, and they are faulting me for debts he made prior to us being married.

Re: Scared Straight

tooleman694 — Fri, 08 Feb 2013 21:38:43 GMT

His mistakes became your mistakes when you got married.

Can you maybe go conventional. What is your middle score.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 22:37:53 GMT

Well the update, the LO already pulled my credit score, told me my DTI is too high due to my Student Loan. My student loans are currently in deferment. The LO stated that in order for them not to be counted they must be deferred for more than 12 months.

Re: Scared Straight

tooleman694 — Fri, 08 Feb 2013 22:45:52 GMT

Go back to school.

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 23:38:22 GMT

I am, but I am only part-time right now. I am taking one class

Re: Scared Straight

jadeite788 — Fri, 08 Feb 2013 23:39:51 GMT

Plus I already have a degree, so I can't get financial aid.

Re: Scared Straight

tooleman694 — Fri, 08 Feb 2013 23:43:14 GMT

I think you would have to go for a masters, so it shows your graduation date over a year out. Or you could get a minor in culinary arts or something lol.

Or just go with a conventional loan. Have you looked at that.