For FHA loans do credit scores matter if your not the primary buyer, my wife has excellent credit i do not.

Asked by Johnsaldivar, 94564 Sun Dec 12, 2010

My wife and I average 90,000 per year she has AAA credit , I have little to none but i do have medical bills that have went to collections, how hard will it be for us to get a FHA loan.

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John Dutra, , Fremont, CA
Fri Dec 17, 2010
John,
If you are using your wife's income alone - no worries at all. It is possible that with FHA, if you can show you are in a payment arrangement with the collectors, they may allow tthe loan, but most lenders now have a 640 minimum requirement for buyers using thier income to qualify.
It may be a situation where your medical coverage has not completely paid their portion of the medical bills and this may be something that can be taken care of in short order. If that is the case, I recommend sitting down wth a lender that can review your credi in total to give you the best recommendations on how to clear that up.
Again, if you do not need to use your income to qualify, you are good to go.
0 votes
Vicky Spiva, , Redding, CA
Mon Dec 13, 2010
If the lender is using your income for qualifying purposes, then your credit score does matter. However, medical collections aren't supposed to be used as a basis for denial. My company will do an FHA loan with credit scores as low as 600. You will need to explain the circumstances as to why the accounts went to collection depending on the total owed and when they were opened. Collection accounts in California are collectable for 4 years even though they stay on your credit report for 7 years.

If your credit score is below a 620, the loan may cost a little more than if the score were higher. I hope that helps you.
0 votes
Mike Rowland, Agent, El Sobrante, CA
Sun Dec 12, 2010
Credit scores for all buyers are important, Pretty libral, I recently did a loan as low as 620 middle score. Biggest thing you need to look at is debt to income ratios, I some attached a link to FHA guidelines. Most are not aware that there is also down payment assistance available. I just closed last week on a great property in Pinole, buyer came out of pocket on a 400k property only $4000.00.
Contact metomorrow and I would be happy to share more.

Mike Rowland
510.222.9150
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