How does the non borrowing spouse bad credit score affect the home loan refi application?.

I live on community property states, I am a non borrowing spouse have a bad credit score and the husband is the one applying for home refinance, my name is on the title, does the bank will check and pull the non borrowing spouse credit score and how will it affect the loan application? Is there any chance that my husband refinance application will not be approved because of my bad credit score?.Thanks.

2 Answers

All applicants on the loan come into play. Everyone's credit is reviewed. A good credit applicant can not be used to offset a bad credit applicant - even on a refinance.

If the bad credit person is NOT on the loan application, then there are no issues.

The loan is written for the persons applying. The home is only used as collateral. Since your name is not on the loan application, your credit (or lack of it) will not have any effect. You should however be required to sign a notice stating that you acknowledge that a loan against the property has been approved.