Can only one spouse apply for a mortgage in California?

Asked by Kala, San Francisco, CA Wed Apr 27, 2011

My lowest credit score is in the upper 670 range, and my highest in 700 range. My husband has scores in the 780 range. Can only the spouse with the better scores apply for the mortgage loan?

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9
jjacobsDO, Landlord,
Wed Aug 31, 2011
Kala,
Absolutely - I would recommend you contact Sr Mortgage Banker - Thomas R. Callahan with BBVA to discuss further. The lower score may very well make no negative impact on your loan approval or rate/costs. He can advise you on which program might serve you the best. From my experience in speaking to other past clients he has a lot of flexibility with underwriting of loans.
By the way - if you guy's are first time buyers then he has a new program that offers:
1. NO Mortgage Insurance in payment
2. Only 5% down
3. Low 30 year fixed rate
4. NO payment until the 5th month after closing.
5. NO origination fee, NO points, and NO junk fees !
6. single family home eligible
7. 660 credit score

His contact is Email - tom.callahan@bbvacompass.com
http://www.bbvacompass.com/mortgages/tcallahan

I hope this general information is helpful to you all - TJ
0 votes
Rich Bennett, Agent, San Francisco, CA
Tue Aug 30, 2011
Hi Kala-

I would suggest that you engage either a mortgage broker or direct lender to address this question to. Interview several mortgage people and begin to develop a relationship. They can guide you through questions like these.

Thanks-

Rich Bennett, Realtor
415.305.4911

http://www.115-117States.com http://www.81Lansing208.com

Zephyr Real Estate
DRE#01358540
Web Reference:  http://www.RichBennettSF.com
0 votes
, ,
Tue Aug 30, 2011
Hi, Kala. Short answer is: That's up to you. Both of your scores are excellent for FHA. You just need to decide/know whether or not either one of your incomes alone is high enough to qualify for your desired loan amount on its own.
0 votes
, ,
Mon Aug 29, 2011
Hi Kala,
If you are going FHA you should both be on the loan. Your credit will not hurt the rate and with FHA they will run your credit and hit your husband with your debt even if you are not on the loan. California is a community property state so FHA views your debt as half his. Ironically, if you are not on loan FHA does give half your income to him. If you are going conventional then it may be beneficial to not have you on the loan, because the higher the credit, the better the rate. The best thing you can do is talk with a lender and hash it out so you can figure which way to go and plan accordingly. Feel free to check out our website
http://www.Readybell.com
0 votes
Gregorio Den…, , San Diego, CA
Wed Apr 27, 2011
Douglas and Frank gave great answers that sum it all up for you. I would only like to add that if you are seeking an FHA mortgage, you can surely be on it with a 670 credit score. There is no pricing adjustment for an FHA loan with a 670 score so for all practical purposes it is looked at no differently than the 780 score. Don't rule yourself out until you speak with a licensed California Loan officer. Contact me if you need assistance.
Web Reference:  http://WeFixRates.Com
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Wed Apr 27, 2011
Yes, depending on income, reserves, down payment and other such items. You should speak to your banks lender to get started.
0 votes
J Mario Preza, Agent, Daly City, CA
Wed Apr 27, 2011
The purchase of a house by a couple where only one spouse is applying for a loan, has a few procedural issues to consider. For instance, if you're applying for FHA, although only one of the spouses are intended to buy, they will evaluate the couple in its entirety. In other words, both must furnish their financials even if only one will be buying(!) As for excluding one spouse from the purchase and/or the loan, there are some steps and forms that must be used, e.g., a quitclaim deed, among them. Keep in mind that sometimes the higher FICO score does not always result in a better "deal," especially if the spouse with the higher rating doesn't necessarily have the higher income. There is a delicate balance between what you're looking to buy, and what you can realistically support with the income of only one spouse.
Web Reference:  http://www.myshortsaleca.net
0 votes
, ,
Wed Apr 27, 2011
Good answer from Douglas. I will add that some lenders will limit how you hold title at close of escrow and may not allow the non-borrowing spouse to take title. I recommend seeing what can be done to increase the 670 score. Oftentimes, the score can be increased significantly by forcing creditors that are reporting negative information on the credit report to confirm the accuracy of the information as required by the Fair Credit Reporting Act. Let me know if you would like some assistance with this, I've had some clients increase their scores dramatically in a 30 day period.


Frank@MortgageFinancePro.com

(415) 475-9309
http://www.MortgageFinancePro.com
California Dept. of Real Estate #: 01371776
NMLS #: 271709
0 votes
, ,
Wed Apr 27, 2011
Yes but income and assets from the excluded spouse will not be considered in the calculation. Furthermore, if you are applying for an FHA or VA loan, a seperate credit report will be pulled on the excluded spouse and debts on that credit report that are not already reported on the applicant's credit report will be added into the debt ratios. This last rule only applies to FHA/VA lending in California (community property state).
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