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We want to buy a home immediately after we finish saving up for a down payment and closing costs. We have good income. Apart from this, my credit is good 660 and more but my husband has a low score around 630. Apart from that, he also has other collections!! I want to know if the old debts will create problem for us in qualifying for a FHA loan. Or should I apply alone for the loan?

jerry · Posted: Mon Feb 06, 2012 3:53 am Post subject:

Hi Guest,

Any negative item on your credit report will have a bad impact when you apply for a loan. If the SOL period is still not over, then it will be a better option if your husband pays off the accounts in full. This will increase his credit score and it will be easier for both of you to qualify for a loan.

Thanks,

Jerry

gmakerley · Posted: Mon Feb 06, 2012 12:57 pm Post subject:

evening...you can certainly begin the process of seeking out a mortgage at this time, and with those scores you've cited. At 630, your husband will qualify under the vast majority of loan products available through FHA. The FHA guidelines are far more forgiving than are conventional, and you'll be going down the right road.

That's not to say that Jerry is wrong in suggesting that old, poor credit accounts be paid off in an effort to raise a score. It's just that you need not delay unduly in seeking a mortgage.

Go for it - find an equitable mortgage lender and discover what you'll qualify for and then move forward.

smnthaking · Joined: 03 Feb 2012 Posts: 58 10.15 Dollars($)

You do not have to be a first time homebuyer to obtain an FHA loan. That said, you can only have one FHA loan at a time; FHA loans can only be made on owner-occupied properties. Idea

gmakerley · Posted: Wed Feb 08, 2012 12:54 pm Post subject:

First-time buyers typically flock to FHA lending because of the somewhat relaxed credit score requirement, in comparison to conventional loans. Another favorable aspect of FHA lending is the lower down payment requirement, which serves most first-timers quite well.

raymond · Posted: Thu Feb 09, 2012 4:34 pm Post subject:

And the FHA-insured Reverse Mortgage program is nice too. It ensures only the homeowners are on Title, just like FHA's standard Forward Mortgage programs. The bank never "gets the house".

jveenstra · Posted: Mon Feb 13, 2012 12:11 pm Post subject: Purchase

If you can qualify without your husband , then applying for the mortgage yourself is ceratinly a good option.
On the good side, your credit score is higher and no open collection accounts to be concerned about.
On the bad side, your husband will get no credit in his credit history for paying a mortgage on time.

The collection accounts may or may not be a problem. It depends on how many there are and what balances are owed and what type (medical or otherwise) and how old they are. A lender may or may not require that some or all or none be paid off before or at closing. Of course, these are a concern only if your husband is on the mortgage. If he has no open judgments, he could be on title only.

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