That is a great question and it looks like you've gotten some great answers. I myself, had to purchase our new home w/out using my wife's credit (bad medical and past collections), however I still needed her income to qualify for the DTI ratio. This was about 2 years ago and I believe the program was a Stated Income, verifiable assets loan.
However, lending like that may have changed or may be more stringent on qualifications. You will have to check w/ a very reputable lender to get this answered! Also, may I suggest someone local to you and that has the mortgage broker and underwriters all IN-HOUSE! That makes it ALOT easier and smoother!
Also, just as a side note: here in TX since it is community property state; your husband would basically have the best of both worlds... he sits on title, but not on Deed of Trust... That is why I may now add my wife on to the DOT very soon... never know when she may pull a fast one on me?? ha ha.. just kidding.. (and I love you honey if you're reading this... :)
There are two things to look at: First, letâ€™s see what type of programs you qualify for and (second) your husband needs to begin the path of repairing his credit. Because whenever medical collections occur it's common for these collections to appear multiple times. I've seen some medical collections report up to 5 times--for the same bill. So this needs to be addressed in addition to the home purchase.
Finally, mortgage companyâ€™s like to see where big deposits come from, so keep good records in regards to your inheritance money (checking account statements, etc) and youâ€™ll be fine!
Mylendingplace (Austin, Texas)
We help clients with both needs and we don't charge application fees. As a licensed Austin Mortgage Broker, I work with all the name-brand banks (Countywide, Wells Fargo, Wamu, etc) so I can simply offer more choices to my clients