Can husband qualify for USDA mortgage on his own?

[Anonymous]

Hi Everyone -- thanks for reading this. We're trying to figure out if my husband can get a loan independent from me. His scores are okay (TU 650, EQ 630, EX 610) - no lates in past two years, no derogs, scores low mostly to utilization - he owes $3k on four cards and we expect to be able to pay this off in the next 4-6 weeks. Only debt is a car loan at $190/month and installment plan to IRS ($100 month - 2k balance) that we hope to pay off before we apply.

He just accepted a new job at a salary of $43,000 base. That job starts October 31.  We also have an S corporation of which he owns 49%, income from that for 2010 was $77,000.

We were planning to buy when spring when my one 30 day late falls off (January 12) but his credit is way better than mine, and we found a house that we love, that's been on the market since March 11 and we're wondering if we can swing this without my income. We haven't spoken to a loan officer yet, but wanted to see if there was any possibility he could get approved on his own.

We have found a house that would qualify under USDA that is $250,000. We live in North Idaho. 

Thanks to everyone for your time.  

[cdtotten]

First, where did you get those credit scores? EX scores haven't been readily available for quite sometime which makes me think those might be FAKOs.

[MrProsperity]

Sorry - you are right -- EX is FAKO/estimate, the other two I bought through this site.

[Anonymous]

From my understanding he can purchase on his on..  The trick is your income would be included in determining if your gross income fits within USDA guidelines in the area you live.  I would check out the USDA site it has a great chart and calculator.  If you happen to be over I believe it can be reduced if you can prove you pay certain services monthly I believe daycare is one of them.

[Anonymous]

Your middle credit score needs to be at least a 620-640(for most lenders) to do a FHA loan. I am currently trying to sell my house and do a FHA rural loan. My lender said my middle score needs to be a 640+, and I had a single credit card with a 1400 limit on it, with a balance of 1100. My lender said pay that card down and I could see my scores go up, so I did. I called and had requested a CLI, got it to 1550 and payed the card down to $600. My middle score(TU) went from 601 to a 640 in about 3 months, simply by paying the card down and all my other bills on time.. If you plan on paying the cards down, do it first.. Makes a big difference on your score! Your other only issue might be the short work history at his current job. Good Luck!

[ShanetheMortgageMan]

Like has been pointed out, some lenders will want a 620 score with their USDA program but most of them will want a 640. 

The income should be enough, but it appears that it might be too much... $43k + 49% of $77k is $80,730 - and the household income limit for 1-4 people in all counties in Northern Idaho is $74,050.  If you have 5+ then it increases to $97,750.  It also goes based on household size, so your income is included too.

Here is the link for Idaho: http://www.rurdev.usda.gov/SupportDocuments/ID%20GRH.pdf

If the income is too high for USDA there is always FHA financing with a 3.5% down payment.