To add on what @dragontears stated. First off, what was said is correct. In addition to that, you need to know if you live in a community property state. If so, they're very likely going to look at your spouse's credit even if they don't go on the loan.
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We don't live in a community property state. There are only 9 states that are and ours isn't one of them.
Message 4 of 5
@mja1970 wrote:Just a quick question that I'm hoping someone can answer for me. We are looking at obtaining a USDA loan to purchase a new home in the coming months (hopefully by this summer). I already meet the minimum credit score requirement (they require at least a 640) for their automated underwriting and approval, but my wife's store is a bit lower and does not yet meet the minimum 640 requirement. We are looking at applying using just my name alone since I have the higher credit score and would have no problems being approved. Can we do this? Will USDA allow me to be approved without including my wife on the application? I know that we will probably need to, at the very least, disclose her income since it is a significant part of our household income, but will USDA take her income into consideration without actually pulling her credit and having her be on application and mortgage itself?
Thanks in advance!
USDA loans are tricky. If she is not on the loan, her income can't be used to qualify for the mortgage (i.e. the loan amount will be based on your income/DTI) but it is counted in the household income used to determine if you qualify for USDA loan program (i.e. USDA loans have household income limits that vary by state/county).
Ha, which was my dilemma. My disabled Uncle lives with me and both his and my combined income put me over their limits. Yet his income cannot be considered for repayment of said Mortgage because he cannot be on the Loan. And now that my income is lower enough to slip under their limits my income doesn't qualify for a Mortgage high enough to buy anything. And the surging housing prices aren't helping anything because everyone now thinks they have a goldmine. lol
