I'm in the process of looking for a home. I have had one issue after the other and every time I clear something up something else happens. Anyway, my loan officer called me after I've jumped through every hoop and told me she forgot to look at my husbands debt. We are separated which is a long story but I am doing this on my own. His debt is counted against me. How do they calculate this. I barely qualified for enough too begin with in Californians market. I wanted to get a nice condo I was at 175,000 before. She told me to come in because its going to make a big difference. I just want to get a grasp on how to calculate what I might qualify for now.
Personally, per your statement that you are seperated you probably need to wait until your divorce is final before you buy a home. Being seperated they can use your husbands debts against you since you are technally still married. While seperated, your husband can file in the divorce agreement that he wants the home. A seperation agreement doesn't hold much for you or against you. While I was seperated my ex decided to take our new car. I trusted him to pay the insurance, he did not. He got in a car accident while having no insurance, got a DUI AND I ended up owing that debt of $20K for a totalled car. Believe me, get divorced first. I had to file bankrupcy in my 20's.
I don't know what California laws are but you need to make sure you are covered in areas. I would hate to see you lose your new home in a divorce agreement.
What they are going to do is count all of his debts against your DTI, car payments, credit cards, student loans..... everything..
The only way around this is to go conventional or get divorced.
sounds like finalizing the divorce is how you get your new condo! nothing's final until the ink dries and the CR's are updated. keep in mind he could also try to gain 50% of your new asset in the divorce calculation as well.