Can My Spouse Get A Mortgage Loan If I Have Bad Credit?

Your spouse may be able to get a mortgage loan even if you have bad credit. If he or she has good credit, a decent income and a good debt to income ratio (DTI) you may still qualify.

How Does It Work?

If your spouse earns enough to meet the income requirements on the mortgage loan with out using any of your income they can apply alone. No states currently require married couples to apply for and sign mortgage loans together. Some lenders in states with “dower” or “courtesy” laws may require that both spouses apply together. If your lender requires both spouses to be on loan documents, simply try a different lender.

What Are Some Potential Problems With Only Using One Spouse On The Mortgage Loan Application?

There are several potential problems when only one spouse is on the mortgage loan. First, if the spouse with better credit does not earn enough the mortgage application may still be denied. Second, the total debts of the spouse with good credit—or both spouses in community property states—may push the DTI into an unacceptable range. Also, if the spouse with good credit has spent any significant amount of time out of work her job and income history may not be sufficient.

What Are Some Possible Solutions?

When only one spouse is on the loan only their information is used. The income, credit and personal savings of the spouse with bad credit are not included in the mortgage application. That does not mean they cannot help. Transferring savings from accounts held by the spouse with bad credit to accounts only in the name of the person applying for the mortgage loan may help lenders overlook a slightly risky DTI. If the applying spouse has a very low income or extremely light job history it may be better to apply jointly. There are also mortgage loans available specifically for borrowers with bad credit.

Related posts:

1. My Spouse Has Bad Credit Can We Still Get A Mortgage?
2. Who Qualifies For Bad Credit VA Home Loans?
3. Can I Negotiate A Mortgage Refinance If I Lost My Job?
4. My Spouse Has Bad Credit – Can We Get a Mortgage Loan?
5. Can I Qualify For A Mortgage Loan Modification Program With Bad Credit?