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My husband makes six figures. We are trying to get a loan for our home we live in through VA loan. Our home we rent out is being foreclosed on so its a short sale. We are trying to buy the home we are in. We got a home loan through a company, approved and everything, but they went out of business! We made an offer on the house and we are awaiting the approval from the bank on our offer. Now we have no lender! I am trying to find a lender that will not require me to be on the loan, I am his wife, but I am a student, and I have poor credit from a previous marriage. My credit score is 500 something his is 600 something. Im not sure why this is a problem with other lenders now since a few months ago we were already approved without me on it. My question is.. Can we find a loan that does not require me to be on the loan and for them not to check my credit? I am not going to be on the loan agreement. Also please send me any of your business sites.
I wasnt specific I appoligize. I live in Southern California. We are tenants, our landlord is foreclosing, we have to move out in June. We have been dealing with this in February. We were waiting for the purchase agreement. Still waiting its a short sale. But our lender who approved us just ran out of business.

  1. Reply
    April 30, 2011 at 12:17 am

    Both a VA or FHA lender will be looking at both your credit reports even if you’re not going to be on the loan. However, his credit score will be the primary consideration. The lender wants to see your credit report because they want to see what outstanding debts you owe. Those debts are jointly responsible. They will not ignore your debt.

  2. Reply
    April 30, 2011 at 12:28 am

    the home you rent out?? do you own this home and are the landlords? If not then you can get this done with no problem. You do not have to be on the note but you must be on the deed of trust if you live in a dower state or community property state
    I am a mortgage banker in TN

  3. Reply
    Fort Sill Army Wife
    April 30, 2011 at 1:02 am

    Im confused are you foreclosing on a home and wanting to buy the one you live in right now? If so theres no way the VA will give you a loan with a forclsoure or short sale this soon.

  4. Reply
    April 30, 2011 at 1:46 am

    Wow, that is a tough situation. I worked with a client in a similar situation recently and the day after they approved the short sale they foreclosed on the owner. We worked it out but it was not easy. You probably need a realtor that has done this type of thing before as it can be quite a challenge to pull it off. You would think the lender would be quite happy that there is a willing buyer but you end up working between 2 different divisions that dont communicate.

    As to your VA loan, most lenders now require a minimum credit score of 620 (VA does not but they only guarantee the loan). If your husbands credit score is below this threshold it may be an issue. If this is the issue you may speak to your Mortgage Broker about what to do to bring your score within the guidelines quickly.

  5. Reply
    April 30, 2011 at 1:47 am

    Ok here is the main thing I see. California is a community property state which means most lenders will pull the non borrowing spouse’s credit report and hold their debts against the borrowing spouses debt to income ratios. Your credit score will not matter but your debts will.
    There are still a few lenders that will do FHA and VA loans under a 620 mid score but not very many. There are some tricks that can be used to increase your scores in days not months.
    See my profile.

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