Approved with conditions

[Faith_Hope]

My husband and I have been approved with 3 minor conditions and 1 that I'm concerned a little about. 

I filed as HOH (which I meet the conditions of being considered unmarried). UW is asking for a LOE explaining my husband filing status as single. Our tax professional (who is also a CPA) has advised that he can file single since we can prove that we were living apart for the last 6 months of the tax year.

based on my own research and interpretation, I don't find that to be accurate and my husband should file as MFS. I will get a second opinion on this and I have no objections to filing an amended return if necessary. We want it to be accurate and can write the LOE stating it was an error and can and will be amended within the allowed timeframe. 

I'm just a little concerned about what such change can do to his already large liability and how it will affect the mortgage process. If we had to do a payment plan would that affect our DTI? All current liabilities for both years are paid in full. Paying more and still trying to save will be tough. 

Any feedback would be great!

[MauiMan85297]

When you did the mortgage application and your LO asked all the qualifying questions, how did you answer question... Are you Married, unmarried or separated?

Also, is your spouse going on the loan as well? What type of loan are you trying to secure (FHA, VA or Conventional)?

[Faith_Hope]

On app, it has married. We did a joint application for an FHA loan. 
I hope for guidance on how best to write the LOE. Realtor is advising one thing and Accountant is advising another. I'd rather them ask us to amend, if necessary than for them to deny the application because of justification that isn't factual (filing single vs. MFS). Idk which direction to go.

@MauiMan85297 

[MauiMan85297]

This would affect DTI if you have to go on a repayment plan.  They will probably ask you to amend the return, I'm not a tax expert but do know that you can't claim HOH if you're married because you are receiving a better tax advantage by doing so.  If your DTI still gets an APPROVE/ELIGIBLE then a simple LOE to the underwriter would suffice- I'd say exactly what you stated here that your CPA told you that you can file this way but it was in error.

[Faith_Hope]

Thanks! 

I've filed as HOH, and UW did not question my filing status. I meet all conditions to file as HOH as "considered unmarried." They only want the LOE for my husband who filed as Single. 

I'll more than likely going to put it was an error on the LOE. *Prayers*

[MauiMan85297]

The UW (yes they can be picky at times) could ask for additional information about your filing as you stated you haven't been together in 6 months (IRS stipulates not living with that spouse for the last 6 months of the year) or you have to be single by the last day of that calendar year.  I'd write the letter of explanation for him and hope that nothing else is required.