Home Buying in Phoenix>Question Details

Alicia, Home Buyer in Phoenix, AZ

I have good credit but my husbands co-signed for his father on a motification loan. WIll I qualify for an FHA loan on my own?

Asked by Alicia, Phoenix, AZ Wed Jun 1, 2011

Will I be able to qualify on my own, does my husnabd credit also needs to be ran? Would that modification allow us to qualify for the FHA loan?

Help the community by answering this question:


Hi Alicia,

With an FHA loan, if you are married, you & your spouse will be required to have your credit pulled to verify both of your monthly debts. Even though your husband will not be on the loan, you will have to qualify with your husband's monthly debts, but without using his income. As long as your income is enough to qualify for up to the maximum debt-to-income ratio (the "DTI"), you should be fine.

The State of Arizona is a community property state, therefore, if one spouse of a married couple wants to use FHA financing for the acquisition of a home, then a credit report is required from the non-borrowing spouse to verify & determine their monthly debt; their credit score is ignored . (A Conventional loan does not have this requirement.) That monthly debt is then included with the borrowing spouse's monthly liabilities to determine their DTI. We can go as high as a 50% debt-to-income ratio (55% with a strong letter of explanation) to qualify for the FHA loan using only the borrowing spouse's income.

We do not ask for anything regarding the non-borrowing spouse's job, credit score, income, or foreclosure / short sale history, however, we do ask for the borrowing spouse's tax returns, as all lenders do.

Please feel free to contact me directly if you have any other questions I may help you with.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
1 vote Thank Flag Link Wed Jun 1, 2011
You may, but "it depends". FHA and conventional loans allow spouses to qualify without the other spouse, but "it depends" on your credit scores, income, etc. FHA does require us to pull the credit of the other spouse and count those debts against you (AZ is a community property state), whereas conventional loans do not. Your best course of action is to pick a good mortgage loan originator and work through the various scenarios with him/her.

Bill Parker, Loan Officer
AZ Lic# 09011570
CPA--Licensed, no longer practicing

Legacy Group Lending, Inc.
15333 N. Pima Road, Suite 300
Scottsdale, AZ 85260
(O) 480-993-3080; (M) 602-565-3646; (F) 480-993-3081
EM: Bill.Parker@Legacyg.com
Website: http://www.LegacyG.com
1 vote Thank Flag Link Wed Jun 1, 2011
The only way to know for sure if you would qualify for an FHA loan is to review your specific case. FHA loans do take in consideration both spouses debts, even if only one is not on the loan. Having said that, the fact that your husband co-signed a modification loan, does not mean he wouldn't be able to qualify for a loan.

Your real estate agent should be able to connect you with a reputable loan officer/mortgage broker that will be able to review your case and help you decide on the best course of action.

Good luck!
0 votes Thank Flag Link Fri Jun 3, 2011
Hi Alicia,

On FHA and VA loans, even if just one party is named on the mortgage the credit and debt of both spouses must be considered. Only on a conventional loan product can a spouse's credit be excluded if that spouse will not be named on the mortgage. The husband's co-signing on his father's modification loan will probably increase your DTI (debt to income ratio) and reduce the amount you can borrow. The fact that the loan your husband co-signed is a modification loan should not, in itself, have any other impacts. He would not have inherited any bad credit incurred by his father over the course of obtaining that modification (missed payments, etc.).

I suggest you contact 1st Rate Home Mortgage @ 480-776-2555. They are the best in the valley and work with 30 different wholesale lenders to get you the absolutely best rate possible. Ask for Jesse and tell him Sonny sent you! :)
0 votes Thank Flag Link Wed Jun 1, 2011
As you can see from the responses below it depends on many factors. Normally on FHA the lender will use your husbands debts, assets, income and credit scores. But there are many exceptions. Talks with a mortgage broker, or two, and they will be able to let you know what to do on your specific case. If you don't have a mortgage broker you know I can give you some contact information.

Good luck!

Carlos J. Ramírez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart –
Certified Negotiation Expert (CNE)
0 votes Thank Flag Link Wed Jun 1, 2011
I close a lot of loans, FHA and conventional with only one spouse on the loan. As long as your income to debt ratios are in line it is possible. Ask your Realtor to refer you to the lender they trust the most and then apply for a pre-approval furnishing all of the support documents the loan officer needs to make a decision. Do not settle for just pulling credit, make them review all of your documents. Credit is only 1/4 of the process.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Jun 1, 2011

The real answer to this question will only come when you meet with a mortgage professional and your situation is reviewed. A good loan officer will review your credit, income debts etc to determine what you could qualify for.

A good loan officer will also help you improve or adjust as needed to be ready to purchase sooner than later.

This review will be at a very low cost (or free) as the loan officer becomes a partner in your quest to own a home. A good Realtor should also be in the same step as you choose partners to assist you.

Arizona Homes for Sale by a Guy from Iowa
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Wed Jun 1, 2011
Hi Alicia,

You will need to decide how you are going to take title on the house. If you are going to take title on your own, then your husband doesn't need to be on the loan. You should speak to a mortgage broker/lender and they will advise you. If you need a couple of names, I will be happy to provide them to you.

Good luck,
3131 E Camelback Road, Suite 125
Phoenix, AZ 85016
0 votes Thank Flag Link Wed Jun 1, 2011
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