Member
AaroninOakland
Posts: 26
Registered: ‎04-11-2011
Re: myFICO Insider's Guide to 2010 credit card reform and new FHA mortgage rules
[ Edited ]

Old post, but I thought I would provide insight as I have noticed confusion in the forums about qualification and income requirements. The Card Act did alter the truth in lending act with a provision called the Ability to Pay Requirement. This means creditors have to compare your individual income (except in the state of WI where household income can be used) to your overall obligations on the CBR. If you get a positive number it means we can approve you for a card or a CLI. No additional documentation is required by the act -- that is for the lender to decide. So be sure to include all sources of income including earned income, rental income, investment income, etc... and if your trying to get away with using household income to qualify just don't say its household income -- otherwise lenders would not be compliant if they use it.

 

Here is more information on the Ability to Pay otherwise referred to as Regulation Z: http://www.bankersonline.com/regs/226/226-51.html