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FHA rules

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Anonymous
Not applicable

FHA rules

I was reading the FHA rules- can I use a spouse's income as a compensating factor when exceeding the 31/43 guideline?  that is, the spouse is not on the loan but will help to pay the mortgage.

Message 1 of 6
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ShanetheMortgageMan
Super Contributor

Re: FHA rules

Yes, AUS approval is more likely to approve a higher debt ratio than a manual underwrite.
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 6 of 6
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SanDiegoEngineer
Regular Contributor

Re: FHA rules


@Anonymous wrote:

I was reading the FHA rules- can I use a spouse's income as a compensating factor when exceeding the 31/43 guideline?  that is, the spouse is not on the loan but will help to pay the mortgage.


 

No.  The only way their income can be taken into consideration is if they are on the loan. 

 

Cheers,

 

SD Engineer

Message 2 of 6
ShanetheMortgageMan
Super Contributor

Re: FHA rules

It can be used as a compensating factor but not used as qualifying income.  For example I was helping someone in Georgia who had high debt ratios on her own, but her husband made 3 times as much income as she did, so when we presented the underwriter with that information they overrode the "refer" recommendation from automated underwriting and it approved it (a buttload of other conditions but hey it worked).
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 3 of 6
Anonymous
Not applicable

Re: FHA rules

could an FHA case be run through AUS and approved even though DTI was over?  does that happen? or are all cases with high DTI done manually?  when i did conventional AUS said approve but manual said no.
Message 4 of 6
Anonymous
Not applicable

Re: FHA rules

I think for high DTI it has to be automated approval (at least for FHA) but I could be wrong.
Message 5 of 6
ShanetheMortgageMan
Super Contributor

Re: FHA rules

Yes, AUS approval is more likely to approve a higher debt ratio than a manual underwrite.
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 6 of 6
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