Can my wife apply for a home loan without me being on the loan?

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Hello, through these hard times, I have steadily my income has gone down in sales. We have a mortgage & are in process of loan modification but that looks bleak. Though we are going through hard times, God has blessed us with a healthy baby boy. We have also managed paying off our credit cards. Now, we are looking at the worse case scenario, foreclosure in our home.

My wife and I have looked into the option of putting down a healthy 20% on a home that we will buy in the near future (will happen whenever the bank kicks us out). My credit will be destroyed by a foreclosure, and my wife is actually in very good standing because the she is not on the loan & she has paid everything on time, student loans, credit card, etc… She makes pretty decent money and should be able to qualfy on a loan that we would like to get.

My questions is, can my wife be the only one applying for the loan without us getting bothered by the bank and actually qualifying for a loan? Like I mentioned, our house probably will go into foreclosure but we have managed to get out of debt and saved up for a house that will be more affordable for us.

I thank everybody who helps me in this matter and if you have any questions, please do let me know.. Thank you & God Bless!
Thanks for your answers.. To answer your question Gregory, at the time we stopped making payments on the mortgage, we had $ 34k in credit card bills. We had our first son and my wife had no maternity leave. We owe $ 540k in the house, now it is valued at $ 380k, maybe less. We have a negative amortization on the loan and our payments come out to $ 3,500+. What I meant to say is 10% down, on a house that would cost $ 250k. So have $ 30k minimum so we woudl finance $ 225k or hopefully less.. Our payments will be cut by half.. My wife is not on the loan, only me.. We bought this house and made upgrades so, we thought price would go up.. Bubble burst and we are down about $ 160k on this property.. So, puting thsi money we have saved into the house we live in, would be pretty much throwing our money away if loan modification with bank does not work.

  1. Reply
    Michelle C
    April 29, 2011 at 11:23 pm

    If she is not on the original mortgage and the forclosure is not going to affect her credit why not – you got the 1st mortgage without her right? She will need to have adequete credit score, ample income to sustain the new mortgage without listing you or your income though so you will need to make sure that is covered otherwise there is no reason for her not to.

  2. Reply
    April 30, 2011 at 12:19 am

    My question is why in the world would you let your house go into foreclosure if you have enough money to put 20% down on a new home. That makes no sense at all. Apparently you understand the ramification of the foreclosure on you credit. Si this makes even less sense.

    But, to answer your question: your wife can apply for a loan without you, but she has to qualify. The bank is not going to loan her money without knowing she will be able to repay the loan.

    Am i missing something? This whole question really makes no sense to me.

  3. Reply
    April 30, 2011 at 12:54 am

    IF you can afford a 20% downpayment on a new house, you can afford to prevent forclosure on the one you live in right now.

    You’ll go into foreclosure if you quit making payments. Take that 20% you’ve saved and put it towards your mortgage payments! And then refinance the house you’re in.

    Your wife MAY be able to qualify for a home loan in her name only, but it’s not likely, if she is married and between her and her husband, they allowed foreclosure on a prior home.

  4. Reply
    Doctor Deth
    April 30, 2011 at 1:07 am

    without you on teh loan – your wife would have to have enough income of her own to qualify for the mortgage – you won;t be able to include your income on the affordability calculation, so unless your wife makes $ 70-90,000 a year herself, I don;t see her being able to qualify for a $ 225k mortgage

  5. Reply
    April 30, 2011 at 1:18 am

    Although is she is not on the loan but is on the title then the home is also in her name and the foreclosure will also affect her credit as she is listed as an owner

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