topic Re: Mortgage help in a community property state in Mortgage Loans

Mortgage help in a community property state

Anonymous — Sun, 11 Nov 2018 19:33:18 GMT

First time post, so hello and ty for taking the time to read this .

I’m in Washington state and it’s a community property state. I’m trying to apply for a FHA loan with only me on the loan because I have the good score and I have all the income . They told me I was denied because my wife’s defaulted student loans put her on the CAIVRS list . She had these way before we were married . As I read it , Debt’s that happen before marriage , the other spouse is not responsible for . This will probably be cleared up soon anyway because we have been part of a rehabilitation program for her loans for over 10 months. But my question is , since I’m the only one applying and her student loan went in to default before we got married, will that still cause me to get denied for FHA?

Thank you for your time

Re: Mortgage help in a community property state

homeloanexpert — Mon, 12 Nov 2018 22:02:05 GMT

I had a borrower with the exact same circumstances as yours also in Community Property State. I was required to hit my borrower with the debt at 1%, but I couldn't use her bad credit against him. We didn't even run the NPS's (non purchasing spouse's) SS number through the Federal Credit Alert System, therefor the CAIVRS claim is a non issue. If your loan was denied for only this reason, you were robbed. This is an easy deal, You went to the wrong lender.

Re: Mortgage help in a community property state

VALoanMaster — Tue, 13 Nov 2018 19:29:12 GMT

@Anonymous wrote:
First time post, so hello and ty for taking the time to read this .

I’m in Washington state and it’s a community property state. I’m trying to apply for a FHA loan with only me on the loan because I have the good score and I have all the income . They told me I was denied because my wife’s defaulted student loans put her on the CAIVRS list . She had these way before we were married . As I read it , Debt’s that happen before marriage , the other spouse is not responsible for . This will probably be cleared up soon anyway because we have been part of a rehabilitation program for her loans for over 10 months. But my question is , since I’m the only one applying and her student loan went in to default before we got married, will that still cause me to get denied for FHA?

Thank you for your time

Hi Maharrington,

I have never had a scenario where my underwriter has pulled a CAIVRS report on the NPS (non purchasing spouse).

Your lender really has no reason to pull CAIVRS because your spouse is not applying for a government backed loan, you are. The only thing that your lender should have done is pull a credit report to add your spouse's debts to your file. If the student loans don't report a payment then the lender should use 1% of the balance as a monthly payment.

You need a new lender.

Re: Mortgage help in a community property state

Anonymous — Thu, 15 Nov 2018 04:50:23 GMT

Your wife's monthly liabilities are the only thing that should be considered. Strictly for DTI purposes. Not her score.

Re: Mortgage help in a community property state

JVille — Thu, 15 Nov 2018 05:06:05 GMT

Switch lenders!!!!