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Community Property and Separation

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Anonymous
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Community Property and Separation

I live in Louisiana which is a Community Property state.  FHA guidelines states that I must include my spouse's debt when being considered for a mortgage.  I am currently separated from my spouse but not divorced.  My divorce will take anywhere from 6 months to a year to be finalized.  There is no such thing as a legal separation in Louisiana, you are married, divorced or single.

 

Does any one know if there is any way to be considered unmarried under these circumstances?

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Community Property and Separation

I could be wrong, but from what I have seen and from my experiences there is no way out of this.  Alot of questionable underwriters used to "claim" that a married couple was separated to avoid this part and are now being sued and held accountable for loans that were submitted with improper information.  Too many people were claiming to be separated if one of the couple had bad credit or large debt loads.  Due to this, they are not allowing (that I know of) a separation to be reasoning to not follow standard FHA rules.  If you are married they will have to take his debt into consideration.

 

The only plus is that if you have good credit and a decent down payment, they may consider the fact that your husband's debt is included as compensating factors when determining DTI for approval.  No guarantee on this, but if you are a couple % high on DTI with an otherwise strong file, they may allow it either way. 

Message 2 of 5
Anonymous
Not applicable

Re: Community Property and Separation

I wonder if it would help if I went ahead and filed for divorce during the waiting period.  Is that acceptable proof that you are seeking divorce, or does the divorce have to be final?
Message 3 of 5
ShanetheMortgageMan
Super Contributor

Re: Community Property and Separation

Has to be final.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 5
ShanetheMortgageMan
Super Contributor

Re: Community Property and Separation


@Anonymous wrote:

I live in Louisiana which is a Community Property state.  FHA guidelines states that I must include my spouse's debt when being considered for a mortgage.  I am currently separated from my spouse but not divorced.  My divorce will take anywhere from 6 months to a year to be finalized.  There is no such thing as a legal separation in Louisiana, you are married, divorced or single.

 

Does any one know if there is any way to be considered unmarried under these circumstances?


 

Can you not qualify with your other spouses debts considered?
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 5 of 5
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