My wife and I are moving to Wisconsin next month and are starting to think of buying a house in the first half of 2017. She makes much more money than I do but my credit is so much better than hers that she likely won't qualify. My understanding is that married WI residents can claim spouses income without them being on the account, how does that work with mortgages? Can I qualify on my own for a mortgage and claim her income on my application?
Unfortunately your wife will have to be on the application if you want to claim her income. Do you think she could qualify for an FHA loan?
Right now there is no chance she qualifies for anything. In a years time, maybe. She's got a judgement and 120+lates on a student loan that are killing her.
That sucks. I hope she is able to pull her scores up soon. Having to wait a few months won't be too bad. I'm sure the time will fly and by then you two will be in a much better position.
In order to use a person's income, they must be on the application which means their credit comes into play. In community property states, spouse's monthly debts will be added to DTI regardless of whether they are on the loan.