VA Home Loans: My Credit Score Stinks, Can we Qualify with Only My Spouse’s Credit Score?


I read your well written article, “Are You Eligible for a VA Home loan?” on the website. I appreciate your willingness to share your expertise. That is very magnanimous of you! I am impressed that you are willing to take questions. I understand you would be providing me general answers, just based on yet not specific to my situation and your answer can not be construed as a binding approval/denial!

I am a newlywed of less than 30 days. My husband is retired US Military. His credit is very good. The last time we checked it, it was in the high 700’s.

My credit? Urgh! A divorce with disputed liabilities, a lay-off and a collapse of a self-owned business due to financing partner withdrawal for their personal reasons, I am left with a credit in shambles.

I am mortified to say my score is in the low 500’s.

We want to purchase a home. The builder is insisting the VA requires me to apply for the loan as a co-buyer/owner. I have nothing to bring to the table but a bad credit score. I say there has to be an alternative. I mean what happens if a person got a loan and then got married to a bad debt person? Seems unfair to those who are married already.

  1. Do I have to be on the loan or is this an uninformed agent?
  2. If I have to be on the loan how do you suspect my odious situation will affect our approval/amounts?
  3. If I have to be on the initial loan approval is there any way to separate myself from it later like a quitclaim or a rescission?

My husband has worked really hard to earn his good credit rating. I am doing what I can not to impact it negatively. I would hate to interfere with his dream of owning a home again! We know he could go conventional but he earned the right to the VA loan he should reap the benefits.
What do you advise.

ANSWER: Lenders base your collective qualification on the lowest credit score.
So if you want to buy we would have to do it using your spouse info alone!
In other words, we could only utilize his credit score, income and debts for qualification.

You could be on title but NOT the loan.

More and more it is seems like the lenders are raising the minimum score even higher.
I think within the month all major lenders will be requiring a minimum 600 score.

When ready, have your husband fill out our PRE-QUALIFICATION FORM with only his info.

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