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So frustrating!

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Anonymous
Not applicable

So frustrating!

Hello. Does anyone have any info as to community property state, and what exactly would be counted as  a montly debt concerning my husband? He is wanting to apply for a VA loan, and we just found out that since we live in a community property state we will have to also pull my credit to just see what debts are listed there that aren't on his report? I am not going to be on the loan. I have totally neglected my credit and have been solely focusing on his in order to get us into a house. I have have many collections and a judgement, all of which I am now dealing with, but I fear it may be too late and we may have to wait another year before applying if these debts will count against him. Any info I would appreciate. Also, he has an account owned by Asset Acceptance, OC is Bank of America. It's due to fall off in november. Has anyone had any experience with them on reselling it, or will this have to be paid regardless?

Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: So frustrating!

As far as debts go, it gets tricky.

 

Any monthly payment you have will be counted towards his DTI.  if you have a credit card or school loan, etc.

 

Any collections or judgements they may require a minmal payment amount be counted towards dti as well.  Not sure.

 

As far as the old BofA account it depends.  Typically if it is about to fall off they may ignore it, but if it is for a fairly large amount they still may want it paid or in a payment arrangement.

 

Unlike if you were on the loan, they should not require the judgement to be paid or any of your collections to be paid off which is the good news, but like I said, they may want to count a "payment" into DTI for these accounts.

 

Message 2 of 3
Heavanly1
Regular Contributor

Re: So frustrating!

Living in a community property state means that any assets and debts aquired during the marriage will be considered both his and yours.

 

The reason the lender wants to pull your credit as well is to see if any debts acquired during the marriage are outstanding and past due. If so, then a creditor could legally go after your husband for payment. This could effect the price of the home he can afford. Therefore, your debts will be calculated into his DTI ratio.

 

 

Message 3 of 3
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