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In a community property state the sposes debts will count against your ratios
If you want to use their income they must be on the loan
The third guy is setting you up to comitt fraud if anything changes (like getting married) during the loan process it must be disclosed to the lender
Brian
It is
Yes, Texas is a community property state.
(corrected spelling error)
We are finally homeowners!!
Closed May 5th-30 yr fixed at 5.25%.
I live in TX also and was just told the same thing and denied a FHA loan yesterday because of my hubby's debt being included! I'm so upset about this!
It doesn't make sense - if you're not including your spouse's income, and your spouse is not going to be on the loan, how can they include his debt????
I would qualify on my own with no problem, according to the broker we applied with.
Why is this and how is it justified??!! Can anyone shed some light on this?
@Anonymous wrote:I live in TX also and was just told the same thing and denied a FHA loan yesterday because of my hubby's debt being included! I'm so upset about this!
It doesn't make sense - if you're not including your spouse's income, and your spouse is not going to be on the loan, how can they include his debt????
I would qualify on my own with no problem, according to the broker we applied with.
Why is this and how is it justified??!! Can anyone shed some light on this?
The justification is that in a community property state, anything acquired during the marriage is community property. This means both spouses are responsible for the debts. If you were to divorce, you would each be responsible for half of the debt accumulated during the marriage....but you would also get half the assets acquired during the marriage. So even if you and your husband keep your finances separate, you are each responsible for each other's debts (half, at least). Does that make sense?
@Anonymous wrote:
I understand that, BUT why not include the income? That is the problem I have. Governement math I guess....
Oh I see what you're saying. I guess because if you include the income, then he would have to actually be on the loan and his entire credit would count, not just the debts in DTI. Is that the problem? You can't use him on the loan because of his credit, but his debts put you over on DTI?
I have a similar situation, although by the time we're ready for a loan, his credit may be ok....but he has no income....so if I include his debts but no income, it makes the DTI tight because of our student loans. UGH. It's never just easy!