What If My Spouse Has Bad Credit

posted in: Buying A Home, Mortgage Overview | 0

Let’s say my wife and I are buying a home together. And let’s say her credit is at where it needs to be. She has a bunch of debt and bad collections and all that kind of stuff. Do I have to add that to my debt-to-income ratio?

So if we’re doing an FHA loan, all that debt that she had would have to carry forward to my side, and then I’d have to be able to qualify with my income. If I was a veteran and we could show that all that happened before our marriage, then we could eliminate that.

If it’s conventional, then I would just leave her off the loan. Now legally married, she still would get ownership in the house with none of her liability or anything would have to carry forward on my side.