Will I qualify for an FHA Home Loan in California?
I have a 605 credit score, debt to income ratio is 26%. Gross annual income is $65K. Will I qualify for an FHA loan? I want to take advantage of the buyers market out here in Califonia. Not using my husbands credit score because it is bad, can I use his income since he is paying for the mortgage as well?
Will not be using my husband's income, I make more and most likely will qualify on my own since I have in the past for a $400K home. Just curious with my current stats if I qualify for an FHA Loan....
- loanmasteroneLv 71 decade agoFavorite Answer
Normally a lender will use the credit scores of the person earning the most income. So if you are the one earning the most in the family then the lender will use your credit score.
If you want to use your husband's income to qualify the lender will probably only use his income and not his credit score.
If you fail to use your husband because of his credit score you will not be able to use his income for qualification.
If you fail to use your husband to qualify for the mortgage, he will not be able to sign the loan docs as well the lender will require that he sign a quit claim deed during escrow giving you all rights to the property as California is a community property state.
Once the loan and escrow close then you may add his name to the deed, but not the mortgage.
I don't know where in California you reside, but there are many homes available in Southern California for sale that are now either bank repos or the sellers have reduced the price.
I hope this has been of some use to you, good luck.
- Big daddyLv 51 decade ago
You should be ok, the 605 is just above the board, the only thing you might get hit on a little bit is if you have to pay mip. They are calculating mortgage insurance by a risk model starting in about 7-10, so the low score may bump that payment up a bit, but if you can put down 22%, or go with a 15 year term, you won't have to worry about it. go to fha.com or fha.gov for more details, hope this helps and feel free to ask questions, good luckSource(s): mortgage broker
- FRANKLv 51 decade ago
FHA has certain requirements. You need to consider his credit, if his income is being used to qualify for the loan. If his income is not needed, then you should be OK. FHA also requires that you have not been late for mortgage (rent) more than 2 times in the past 12 months.Source(s): Mortgage Broker
- 1 decade ago
Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal you believe it to be, a bad credit home loan can still<!--work to your advantage.Your best bet in assuming a bad credit home loan is to pay as much cash up front as possible, and see if by doing so you can negotiate a lower interest rate.
You’ll save enough money over the term of the loan to compensate for the sacrifices you had to make in handing over the down payment.
The bad credit home loan can be a win-win proposition for both lenders and borrowers; the lenders, thanks to the higher-->interest rates, get bigger returns on the money loaned, and the borrowers get a homes in which to build equity, and chances to restore their credit records so that the first bad credit home loans they take will also be the last!
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
The bank will most likely use the credit score of the higher wage earner. You cannot have your cake and eat it too. So your husbands info will have to be apart of the loan process unless you can qualify solely on your own.
- blondieLv 71 decade ago
i cant tell you if you will qualify but i do know that if you are married and you want to claim his income, you have to include his debt/bad credit score as well.
- 4 years ago
As long as your new job is the same line of work it shouldn't cause a problem. Unless that is that they change the criteria between now and then.