Can my wife's bad credit hurt our mortgage rates?

Her score is sufficient to obtain a mortgage. FHA requires information on the non borrowing spouse, however Conventional financing does not... really it depends on how much of a down payment you have... if you choose the minimum down payment of 3.5%, you will use FHA financing and her credit score will have very little impact... if you go conventional and put 20% or more down, you can get a better rate on your own... contact a local mortgage broker, not a bank, and have him do your application.. he can advise you which will work best for your particular scenario... WilliamAcres.com

If you are looking to purchase using FHA, her score is OK. a minimum score of 640 is required by most lenders to get the best rates for FHA. As long as she does not have serious lates or charged off accounts, etc. then she should be OK on the loan. You do not have to put her on the loan, but then you wouldn't be able to use her income, which may mean you do not qualify for the home you want. Even if she is not on the loan, FHA will look at whether her debts could impact your ability to repay the new loan. Best advice is to meet with a local Mortgage Banker/Broker to see what is really the best for your situation.

She does not necessarily have to be on the mortgage. However, if you need her income to qualify then she will have to be on it. An FHA purchase loan may be the way to go if you need to use her income to qualify, as FHA pricing does not go up for having a lower credit score. Her 640 meets the minimum, and you'd receive the same rate as someone that has an 800 score. If you don't need her income to qualify for the home you would like to purchase then you can take a look at a conventional mortgage and just leave her off the note. I'd be happy to walk you through this, educate you on the differences, and provide a pre-approval for the loan program you determine is best for you.Best,Geoff Longwell www.englendingpa.com

My name is KC and I am the senior loan officer for the company. If you have the FICO score of 760 and she has 640 then it will not be much effect to the rate. Both of you still can be on the loan itself and have the A+ rates. It seem that your debt ratio is also low please give me a call anytime tomorrow at 858-939-9252 and I will be more than glad to assist you. We have great programs and great rates available including assistance with downpayment and closing cost.Thank youKC858-939-9252

Great question. Based on your scenario and your income it might be possible to remove your wife from the application and proceed with the loan in your name only. Your 740 score would indicate your credit is outstanding.Good luck.