Question Clarification: Thank you all. I wanted to clarify the question further but I couldn't figure out a way to update/modify the question, hence I am writing this as an answer.

We both have a clean and excellent credit and she is a Tech. executive earning a decent salary (six figures). We did apply for a loan last year in my wifes name alone and got approved by many lenders. They were all what you call pre-approved, so not sure what would have happened if we were actually going to close on a house. I am fine with having the home in her name alone and I am ready to sign any papers. Not an issue. We would prefer an FHA loan to lower the burden on the down payment.

I have a high-tech startup and like any startups needs a lot of money and in the process have accumulated a lot of credit card loans in my name. Plus I don't have any income to show now as it is a startup. Infact my tax filing will reveal a lot of losses. I assume that if we apply in both names, my credit card loans will push the debt/equity ratio much higher and her loan eligibility amount will be reduced drastically.

Recently, we were told by a lender that for FHA loan, it will require to provide the debt amounts for both the spouses. In other words my credit card debt must be reported which seems to be the problem. We are also told that if we go with a conventional loan, then my credit card debt is not a problem.

I would like to know from some experts what is the best way for us to take mortgage and purchase the home just in my wifes name.

Thank you.

You can get an FHA if your wife can qualify on her own income and credit, however the title insurance company will probably require you to have the husband sign a document agreeing that the house is her "sole and separate property" and that you have no legal claim to the property now or in the future

Quitclaim deeds are generally used when there is uncertainty, usually in the title company’s mind as to whether or not the grantor has an interest in the property. For example, a quitclaim deed is often used when one spouse owns the property as his or her separate property and the owner’s spouse has no record title interest thereto. For example, even though your wife may own the real estate as her “sole and separate property” most grantees, as well as title insurance companies, want to be certain that the husband does not contend that he has a community property interest in the property. To eliminate a later claim from the husband that he owned an interest in the property, the husband (being the spouse who is not on record title) will sign a quitclaim deed in favor of the grantee. This means the husband is conveying any of the interest he has in the property, which may be none. The wife will separately execute a grant deed. I hope this helps.

As stated earlier, your next appointment is to sit down with a tax expert and real estate attorney. The FHA website is shown below:

Really, Barry? In a Community Property state?
I don't think so, but I'm willing to be proven wrong.
My opinion is that the lender is going to want you both on the loan, and is going to take your credit into consideration. I presume you'll be testing this with a mortgage broker in the next day or so, let us know how it turns out.

G from the West Valley,
As long as your wife can qualify on her own, she can buy the home as her sole and separate property. That scenario has tax and legal implications, so be sure to consult with an enrolled IRS agent and real estate attorney prior to application. You would not be on title if she holds it as her sole and separate property when purchased. Local lenders and experienced agents such as Ted and Bonnie can help guide you towards the most beneficial results.

I think this is a question best answered by a mortgage broker or a loan officer that administers FHA loans. I work with one of the top FHA loan officers in the DC area and I will check with him to get his take on this. Stay tuned.