Mortgage Loans

[riknunez]

Two different loan officers told me 2 different things. One said that if I am married I have to include all of my wifes debt even if she doesn't apply with me. The other said that I should and CAN, apply by myself. And yet a third told me not to tell him I am married and apply as single since my pay stubs state "single". We're not married yet. but plan on doing it before we get the house (next 3 months)....Which one is it? We live in Texas.

[BrianB_The_Loan_Professor]

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

[riknunez]

I guess I need to find out if Texas is considered a community property state. I know the third guy is a dummy. He sounded more like a used car salesman (not that there is anything wrong w/ selling used cars). So in a community property state they will include all the debt, but not the income? It doesn't sound right....

[BrianB_The_Loan_Professor]

It is

[WannaHouse]

Yes, Texas is a community property state.

(corrected spelling error)

Message Edited by WannaHouse on 07-21-2009 09:41 PM

[sherristrait]

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?

[jennordy]

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sherristrait 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?

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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?

[riknunez]

I understand that, BUT why not include the income? That is the problem I have. Governement math I guess....

[sherristrait]

It does make sense, but what if the debt was acquired before we were married? (Which the majority of his was.)

[jennordy]

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riknunez wrote:
I understand that, BUT why not include the income? That is the problem I have. Governement math I guess....

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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!