So, even though a very few lenders are not checking spouse credit, most will. This does not automatically put the spouse on the mortgage note, but can prevent the deal from going through if the spouse's credit is bad.
Marriage, in Texas, creates community property for anything purchased while married, period. Title insurers want to avoid later complications by deeding to both buyer and spouse to make it clear and unequivocal, although there does not seem to be a reason to. The spouse's ownership of the homestead is protected, regardless of conveyance; however, non-homestead properties need to be examined carefully with respect to ownership in the event the buyer pre-deceases the spouse and under what circumstances. You should ask your attorney about the possible consequences.
The purpose of purchasing a property without the spouse on the mortgage note or deed would be questioned by both the lender as to whether it would be homestead and by the title insurer.
They would ask if the purpose was to etablish a separate, second homestead for a spouse to circumvent limits of the homestead exemption law. They might also inquire if divorce is anticipated and separate property is expected by not having a person in title (which of course it would not create). Lenders might ask if this is an attempt to hide ownership of an asset from other creditors.
Regardless of whether the spouse is on the note or the deed, the spouse will always sign the deed of trust. This insures that foreclosure can proceed uncontested by an unawares spouse.
If you can qualify for the loan without her income, conventional financing is the way to go. It's done all the time.
Coldwell Banker Residential Brokerage
972-758-2045 Direct Line
I bought a home 2 years ago and the Title company did not put my name on the deed. In Texas since this is a community property state, the Deed will imply ownership because you will be listed as a "married man". Now , you CAN have your spouses's name on the Deed without using her credit to qualify for the mortgage..once again..we revert to community property in Texas.
I work with an EXCELLENT lender who keeps me advised of FHA and other loan programs that are designed to assist in qualifying buyers. Please contact me at your convenience and I will assist you through the lending and home buying process.
Lucy A. Puniwai
Sans Pareil Realty
Now, as for the mortgage. It is perfectly fine to leave off a spouse with lower credit scores. I do this all of the time.
On an FHA loan though.... Spouse debt will be included(added to yoour debts). The spouse's credit report will be pulled and their debts will be placed on your loan application. ** The spouse's bad credit/credit score will have ZERO IMPACT on the underwriter's decision to approve/deny your loan.
On a conventional loan... the spouse's credit and debt are ignored.... they are only added to the deed.
Feel free to email me if you have any follow-up questions!!