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Old 09-12-2014, 11:55 AM
 
5 posts, read 5,229 times
Reputation: 11

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My wife and I are looking to buy a home in Arizona with the VA loan. I will be the only one on the loan as my middle credit score is 709 and my income is good. Few questions: First, my wife has a home that she bought prior to us being married and has a renter in it that covers the mortgage. Does the mortgage and HOA fee of her townhome count towards my DTI if the home was purchased prior to us being married and she is not on the loan? Secondly, if she has less than good credit with some past due balances from years ago prior to our marriage do I need to get them paid off prior to me being able to qualify? Lastly, my income for 2012 that shows on my tax returns is $93k, for 2013 it is $135k, and my YTD income this year is $160k. I have been at the same job for almost 3 years and in the same industry for 12 years. How do they calculate my income for my DTI? Right now I am well below the DTI threshold I need to be, but if I have to count her mortgage it maybe close depending on how they calculate my income. On her townhome that she purchased well before we were married she does have a renter in it, but she failed to file rental income last year because she didn't make any money after the mortgage and HOA. We were married this March if that helps. Thanks in advance as we are hoping we are all good, but nervous of course.
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Old 09-12-2014, 12:30 PM
 
Location: Chandler, AZ
4,071 posts, read 5,152,771 times
Reputation: 6169
VA Home Loans are pretty simple...you would only need a credit score of 620+ to qualify. As far as the DTI ratio: "Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 41%. In the event the number exceeds the 41%, the VA has a residual income guideline which can allow approval, yet are not considered a compensating factor." If you are below 41%...you should be good. Not sure you can leave her off the loan though as AZ is a community property state.

I have a pretty good lender if you would like a recommendation...PM me.
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Old 09-12-2014, 04:48 PM
 
Location: Buckeye
604 posts, read 935,109 times
Reputation: 1395
Concerning the wife's mortgage on her town home. I do not believe that is your debt. Her credit score has nothing to do with your new VA loan since she is not one of the borrowers.
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Old 09-13-2014, 05:13 AM
 
Location: the AZ desert
5,035 posts, read 9,228,857 times
Reputation: 8289
Your questions really aren't Phoenix-specific, therefore, you may get better feedback by posting in the Real Estate-Mortgage section here. It seems as if a couple of the regular posters there are very knowledgeable.
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