Financing in 30016>Question Details

Epiphany766, Home Buyer in Covington, GA

My credit is about 600-625 but I am also co-signer on my exhusband's vehicle. Will this count towards my debt ratio?

Asked by Epiphany766, Covington, GA Sun Jul 1, 2012

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Possibly. If we can show that he is actually on the loan with you and you are just the garantor then as long as he is willing to provide proof he has made the last 6 payments we won't count it as your debt.
0 votes Thank Flag Link Wed Jan 23, 2013
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified you purchase, you can submit your request online at http://www.rodneymason.com.
0 votes Thank Flag Link Tue Jul 3, 2012
Yes, quite possibly. Lending guidelines require all co-signed debt to be included into a borrower's debt to income ratio.

If the Divorce Decree specifies that the loan is question is his complete responsibilty after the divorce, only then can that debt be excluded from your debt to income ratio. It will need to list the crediotr's name and preferrably account number. This is how your paperwork should read, but there is no guarantee of that. While the Divorce Decree might relieve you of the payment obligation, should be miss a payment, that will impact your credit score.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
0 votes Thank Flag Link Tue Jul 3, 2012
If you can prove he is making the payments it shouldn’t

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jul 2, 2012
consult with a mortgage lender to best advise you in this area...
0 votes Thank Flag Link Mon Jul 2, 2012
get the loan out of your name as well as any other joint debts.
he can go to the bank and refinance the auto to get you off.
i see this a lot where the one spouse says they will pay and its
even in the divorce decree, but the banks dont see it that way.
same with a home, have the owning spouse refnance to clear
the other of the debt. its nothing personal against the x-spouse
its just better if the joint debt is severed.
it will help your credit. while you are at it, go and get a credit card
in your personal name, this will bump your score up too as long as
you keep the balance to 30% of the available debt available
0 votes Thank Flag Link Mon Jul 2, 2012
FHA recently changed its guideline regarding co-signing accounts. It used to be that if your ex (for this example) is making payments for 12 months, the debt won't count against you, regardless if your ex is on the loan or not. Now, in order for that to happen, you and your ex have to have been on the loan. If he's been making the payments for 12 months and both of you are on the loan, then the payment doesn't count against you.
There's a big difference between 600 and 625. Most banks are moving to 640 minimum score. Check out crednology.com to get your scores up and make the process easier for you.
0 votes Thank Flag Link Sun Jul 1, 2012
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