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USDA QUESTION

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NikJ4
Established Contributor

USDA QUESTION

Live in Texas and currently seperated from spouse. Will I have to count his debt if I apply for loan individually? I know FHA does but I can't afford his and my debt with my income.. Also, I have student loans deferred for over a year and want to know will those be counted against me.. I am trying to do my research as I am paying stuff down to lower my dti at this time..

thanks for any response in advance

 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: USDA QUESTION

It truly depends on the state.. TX is a community property state. Meaning a spouses debts may be counted against your Single DTI ratio, however many community property states have guide lines on seperated spouses. I would think if you become legally seperated that debts that are only in his name should not count against you. I'm not familiar with TX in particular unfortunately. That being said it really depends on when the debt was taken on. If the debt was taken on during the marriage TX court could technically make you liable for half that debt, in which case they would most definitely count against you.  I'd contact a lender or credit advisor this has to be a common thing with the nearly 50% divorce rate in this country. 

Message 2 of 6
Anonymous
Not applicable

Re: USDA QUESTION

I work in CA which is a community state as Texas is. If you legally seperate you may be able to get away with excluding HIS debts (only his name). But if you're on the account it'll be hard to say who racked up the debt. If you have a statement or letter from the Student loan stating its deffered the Underwriter will take that into account and not include that in your monthly debts (DTI ratio).

Message 3 of 6
songsofexperience
Frequent Contributor

Re: USDA QUESTION

Carla is WRONG. If your loans are in deferment they will calculate what your payment will be when deferment ends and use that. Here's the statement from USDA UW guidelines:

 

Student loan payments must be included in ratios even if loans are currently in deferment.

 

If you have a lot in student loans, look at IBR.


Starting Score: 2/2013 EQ 535
Current Score My Fico: 5/23 EQ 808| EX 812 | TU 800
Message 4 of 6
NikJ4
Established Contributor

Re: USDA QUESTION

Thanks everyone. I think I will be going FHA as this will be the best route for my situation.

 

Message 5 of 6
Anonymous
Not applicable

Re: USDA QUESTION

requires only upto 580 middle score with as low as 3% down payment for FHA.

Message 6 of 6
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