On any government financing, VA or FHA, the spouses credit will be reviewed whether that person is going on the loan or not. The key reason is to look for major liens or judgements that could "cloud" title when you take ownership of the property or in the possible future. Nevada is a community property state, so "what's mine is yours, and yours is mine". The lender will also calculate the spouses credit liabilities (monthly payments) into your debt ratio and monthly liabilities which will affect your qualification amount. The foreclosure may just have to be explained with a letter of explanation, but will not affect your rate if the spouse was the sole person on the loan that foreclosed and she is not going on the new loan.

I was a VP with a mortgage bank for 5+ years, so please let me know if I may be of any further assistance.

Good luck on your home purchase!

Mary Preheim
marypreheim@realtyexecutives.com

Hello Frenchgippler,

If your VA loan covers the amount of the purchase price, then no you do n ot have to attach her credit history and score to the loan.

If you did not co-sign the loan on your wife's foreclosed property, then it will not affect your interest rate on your new purchase. If you were a co-signer then it will affect your rates.

You can always have your loan officer run a Good Faith Estimate with your name only, and then another GFE with both your name and your wife's name. This will provide you with a good comparison, and to see if your wife's income out weighs her dinged credit score from the foreclosure.

If you do not have a loan officer that is willing to do that process, let me know.

When purchasing a home using your VA loan, you don't have to include her but you'll be limited on the amount of house you can buy without her income.

Have you already been prequalified?