I'm married and I want an FHA loan in my name only. A couple of months ago, I received a call from a borrower who stated this. The couple wanted to buy a home in north Texas and had already been prequalified with another lender. They were shopping for the best rate on an FHA loan.
She was shocked when I asked her what was on her husband's credit. I explained why. In Texas the lender will pull the credit of the spouse and their debts will be included in the debt-to-income ratio. Her husband's score would not be a factor; however, the debts would be. She stated she did not want her spouse's debts included. She knew using her income only that the debts between the husband and wife would exceed the debt-to-income ratio guidelines for an FHA loan.
I asked her a few more questions and discovered that the previous lender prequalifed her on an FHA loan because her score was less than 680, but failed to disclose that at application they would pull credit on her husband, a non-purchasing spouse. I learned that the previous lender had a minimum score for their conventional products. On conventional loans, a non-purchasing spouse's credit is not pulled. Since my company had a minimum score on conventional loan of 620, I offered her a conventional loan with 5% down and sent her an estimate. It was a higher downpayment than the FHA loan, but matched her needs.
At first she was not happy and did not like what I had to say. After many more conversations and learning from other sources about the FHA loan guidelines, she decided to apply with my company. She is currently a very happy home owner.
This story had a happy ending; even though, she said, "I'm married and I want an FHA loan in my name only." If you are buying a home seek a licensed residential mortgage loan originator who you trust will review your complete financial situation. Look for a loan representative that will take the time to explain your options and listen to your needs.
In Texas, contact Jimmy Smith for questions or a no obligation loan consultation.
Jimmy Smith, NMLS#1089067
email@example.com, (214) 872-9091 Ofc
The information contained in this post is for general information purposes only and is not a commitment to lend.