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Doctor Mortgage Loan When Spouse's Credit is Bad

Discussion in 'Finance and Investment' started by Mr. Hat, Aug 24, 2018.

  1. Mr. Hat

    10+ Year Member

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    I'm considering taking out a physician mortgage loan. Long story short my credit is good (over 720). My spouse's credit is bad (and I mean baaaaaaddddd, like well sub 600). I don't see that getting fixed any time soon in spite of my efforts. I'm the only one of the two of us employed.

    Will her credit score matter since the loan is based on my income? Or do they take that into account and I'm SOL? I've googled this stuff and I can't seem to find an answer.
     
  2. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    I was in a similar boat.

    As long as her name is not on the loan, they don't care about her. Or at least the bank I used, SunTrust, didn't.
     
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  3. cpants

    cpants Member
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    Why is her score so bad? Do you have a lot of debts? A bad credit score is usually a symptom of something not kosher going on in your financial life. It may be wise to make sure you are on a budget and have most other debt cleaned up before you buy a home, regardless of whether or not you can get a doctor mortgage. That said, they don’t need her credit to get you a doc loan.
     
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  4. MD Mortgage Helper

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    Her score will not matter if she is not on the loan
     
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  5. tartesos

    tartesos Medalaganario
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    Some states don't allow you to mortgage your primary home on your name w/o your wife I was told and didn't bother to verify. Might be worth checking out if you are in the south.


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  6. Crabbygas

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    I recently did this in Texas. The law said the wife has to be on the title but no requirement about the loan. The bank had no interest in her credit and she is nowhere on the mortgage but she had to show for closing as she is on the title.
     
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  7. VA Hopeful Dr

    VA Hopeful Dr Senior Member
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    This is untrue for South Carolina at the least. Either mortgage or deed to the house itself. Can't speak to other states.
     
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  8. tartesos

    tartesos Medalaganario
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    Sounds about right.


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  9. Dr. Mortgage Lender

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    Typically you do not need your spouse on the loan so her credit will not matter. Always check with a lender just to be sure as it may depend on the State you are purchasing in :)

    Cheers,
    Mortgage Loan Expert
     

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