Home Buying in 53144>Question Details

Prema1993, Home Owner in 53144

Can my husband qualify for a mortgage if his name was not on my previous loan?

Asked by Prema1993, 53144 Thu Mar 1, 2012

We lost our home in foreclosure,but it was only in my name.But was wondering if my husband can purchase a home in his name?

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Your best bet would be to consult with a lender but from what I have seen, your credit does also play a role in him getting financing. If you need names of lenders, please feel free to contact me. Thanks! Mini Samuel
1 vote Thank Flag Link Thu Mar 1, 2012
Hello, I am the Founder of USA HELP Inc, a non profit corporation and the author of Financial Sense to White Picket Fence.

In a word; yes.
This is from the HUD 4155 which is the underwriting guidelines for an FHA loan;

D. Non-Purchasing Spouses. If required by state law in order to perfect a valid and enforceable first lien, the non-purchasing spouse may be required to sign either the security instrument or documentation evidencing that he or she is relinquishing all rights to the property. If the non-purchasing spouse executes the security instrument for such reasons, he or she is not considered a borrower for our purposes and need not sign the loan application. In all other cases, the non-purchasing spouse is not to appear on the security instrument or otherwise take title to the property at loan settlement.

Where there are non-purchasing spouses who sign security instruments relinquishing their rights to the property pursuant to applicable state laws, these non-purchasing spouses do not have to sign the mortgage note. Signing the security instrument for such purposes does not make the non-purchasing spouse a co-borrower.

Except for the obligations specifically excluded by state law, the debts of the non-purchasing spouse must be included in the borrower’s qualifying ratios if the borrower resides in a community property state or the property to be insured is located in a community property state. Although the non-purchasing spouse's credit history is not to be considered a reason for credit denial, a credit report that complies with the requirements of paragraph 2-4 must be obtained for the non-purchasing spouse in order to determine the debt-to-income ratio.

So, in closing, yes. However, know that you may have to shop around for a lender who is willing as some may have what is referred to as investor overlays which are conditions for loan approval on top of the HUD 4155.

If you need an originator, let me know.
1 vote Thank Flag Link Thu Mar 1, 2012
He should be able to. If the mortgage was never in his name or reported on his credit report then the bank would only be looking at his credit and not yours. Keep in mind though that the new loan would only be in his name and they would not be able to use any of your income to qualify. Lastly, if you reside in a community property state and are applying for a government loan (ie: an FHA or VA loan) the bank will most likely pull your credit report but they are only looking at your debts not your credit history.

Hope this helps :)

1 vote Thank Flag Link Thu Mar 1, 2012
The factors are his credit score and debit to income ratio. I have some great lenders if you need help in the 53144 zip code. This is the best time to buy a house, so it's really important to see where you are credit wise. If for some reason he is not ready, there is always credit repair programs. I have a few great contacts for that as well.
0 votes Thank Flag Link Fri Mar 2, 2012
Lenders have certain guidelines they abide by.....however,not being on a previous loan is not detrimental to a potential loan applicant.There are however,other qualification requirements that.must be met.For example...credit,income,work history,etc.It would definitely be worth your time and effort to speak to a reputable lender on this issue.I may refer you to a few if you like.Good luck!
Web Reference: http://www.cbre1.com
0 votes Thank Flag Link Fri Mar 2, 2012
Then on the loan application, where you list the last 2 years housing history do I put rent for that home the spouse owned? On the loan app you either rented or owned. I am assuming you put rent and state for $0.00, then write a letter of explanation that you lived rent free with your spouse. That will work? I will call you with lenders later today.
0 votes Thank Flag Link Fri Mar 2, 2012
Mark, reach out to me and I will connect you with a couple of lenders who will take that risk AND get the loan insured.
You're correct; most have overlays and make this difficult. However, while you're correct California is a community property state, for the purpose of the application, under the "Declarations" you reference, the spouse who was NOT on Title or the mortgage was not a previous owner.
0 votes Thank Flag Link Fri Mar 2, 2012
I would like to know what lender is allowing this. I worked for BofA, the top 2 direct lenders in my county and I am currently working for the 2nd largest broker in the country and I can't find anyone who will touch this scenario in Ca. When I disclose the last 2 years tax returns it will show the property and on page 4 of the loan app you have to mark if you owned property in last 3 years. In CA it is community state so you own it via marriage. Also on the credit report the property will show and you have to write down if you have owned any of those properties. Again in CA via marriage you owned it. Please give me names of lenders who actually allow this scanario. Thanks.
0 votes Thank Flag Link Thu Mar 1, 2012
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