husband's short sale will affect my loan approval? (credit card, financing, student loan)
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husband's property was short sale. Wife was not on the loan of his property but was on the title for a while. Wife's name was taken off on the title before short sale. If wife is buying a property by her alone, will the lender reject the loan for the wife's transaction?
Last edited by katherinej; 04-30-2011 at 01:15 AM..
If you are going with conventional financing it will never be brought up - however if you plan on using FHA (or FHA or USDA) financing then in community property states the non-borrowing spouses credit is checked, and if they see a short sale in that time period they'll want to know if all of the mortgage payments were made on time or not, and if they were not, then a lot of lenders will make you also wait the 3 years (FHA's requirement) since the short sale happened when you were married.
However conventional financing doesn't check the non-borrowing spouses credit in community property states, so a lender wouldn't be aware of your spouses short sale.
Were all of the mortgage payments and other debt (credit cards, student loans, car loans, etc.) paid on time throughout the short sale? If so then your husband would be eligible to purchase immediately afterwards using FHA financing.
No, it shouldn't as long as the wife was not on the first mortgage.
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