Home Buying in Austin>Question Details

Kathleen, Home Buyer in Austin, TX

can i buy a home without my husband's credit?

Asked by Kathleen, Austin, TX Fri Feb 15, 2008

I will inherit money due to my fathers passing. i will clean my credit up and use the remaining to put 30% down on a home. my husband has a lot of medical debt due to disease. can i purchase us a house on my own without his financials coming into play, even though we are married? How much does medical debt effect the homebuying process?

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Paul B. Perez’s answer
Ohh, great questions! I'm going to park here so that I can get more info on this topic. Oh, and I would not put 30% down on a home! You can put 3% if you go FHA and 5-10% conventional if your credit is messed up. Put that money in a savings and put it to better use. Have your loan officer explain why putting 30% down may not be the best idea.
1 vote Thank Flag Link Wed Feb 20, 2008
Kathleen, give me a call or shoot me an email. I'd be happy to answer any questions you might have about qualifying. Often times married couples do not apply together because one of their credit rating is better than the others. Please let me know if there's anything I can do to help.
0 votes Thank Flag Link Wed Feb 27, 2008
With 30% down, you can get anything you want. The banks should beg you to foreclose...
0 votes Thank Flag Link Mon Feb 25, 2008
Kathleen, there are many great programs out there to help every type of buyer. Give me a call so I can help you. You can reach me anytime at 210-421-5859.
Amanda Covington
0 votes Thank Flag Link Wed Feb 20, 2008

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... :)
Web Reference: http://www.exposedhomes.com
0 votes Thank Flag Link Fri Feb 15, 2008
As a local Austin lender (http://www.mylendingplace.com) I've closed many loans where we only use one spouse's income and credit. It's actually very common. Then, after closing, add the spouse to title. Texas is a community property state so your husband is not at a disadvantage if he's only on title; not the mortgage.

There are two things to look at: First, let’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 company’s like to see where big deposits come from, so keep good records in regards to your inheritance money (checking account statements, etc) and you’ll be fine!

Jon Spears
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
0 votes Thank Flag Link Fri Feb 15, 2008
Generally, yes. I have had clients do this before. One caveat is that lending has changed quite a bit in the last 4 months and right now is a bit of a moving target so you would definitely need to run this by a reputable lender (I recommend Jan Hill Mortgage ... 512.431.5223).
Web Reference: http://www.tnpblog.com
0 votes Thank Flag Link Fri Feb 15, 2008
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