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If you are buying in a community property state, your husband's debt (and credit) is yours as well.
Sounds like that's the show stopper...........nothing else.......In VA, you could buy on your own, as your sole and seperate equitable estate and his name wouldn't even come up.
I understood that the credit doesn't matter, if both people aren't on the loan, only the debt does, even in community property states.
This is correct. The credit scores don't matter if they aren't on the loan, but their debt does matter. And many people really need that second income to qualify which does bring their credit into play and could halt things.
This is correct. The credit scores don't matter if they aren't on the loan, but their debt does matter. And many people really need that second income to qualify which does bring their credit into play and could halt things.
I don't work in a community property state. But, it's my understanding, if the non-purchasing spouse has bad debts headed to collection or judgement, they can attach the community property, ie the house. I do know they do pull credit reports on the non purchasing spouse, but I'll have to defer to someone that works in a CP state.
What do they do if the non purchasing spouse has judgements?
Texas is a Homestead State so you can't attach a house to any debt except debt against the house like a mortgage or if someone did work on the house and wasn't paid. That person can file a lien like a mechanics lien. You can't attach a credit card bill or medical bill or any other bad debt, judgement, or collection to the house when it's a Homestead, primary residence. If it's an investment property, sure, but not a Homestead. And you're not going to obtain an FHA loan on an investment, only primary.
So how is debt of the non-purchasing spouse verified?
Their credit report. If they have debt that doesn't show on their credit report, more power to them, but just like with anyone else, it's the credit report that shows the debt. The spouse has to give permission for their credit to be run like everyone has to give permission when their credit is run.
Am I misunderstanding your question?
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