September 26, 2016
A reader asks, “I am trying to qualify for an FHA Loan. I have been apart from my husband for over 13 yrs but not legally divorced. I am currently applying for an FHA Loan and DO NOT want him to be a part of anything Im doing and have FINALLY filed for divorce. House buying is a short sale and I need a fast approval.”
“My divorce will take 3 months, I dont have the time! Do I qualify for any type of exception considering we have been apart for 13 years and the IRS has accepted me as an Innocent Spouse Relief and Separation of Liability and Equitable Relief?”
This is a difficult question to answer for one important reason: state law is a determining factor in circumstances such as these. A borrower who resides in a community property state, where state law plays a big role in how debts are considered for couples getting a divorce, may find it more challenging to get an FHA mortgage loan if the divorce is in a legally ambiguous place at the time of the loan application.
Lender standards also play an important role in any mortgage loan application. A borrower who resides in a community property state and is affected by those laws may also find the lender has certain requirements in such cases.
The only advice we can provide, unfortunately, is this: borrowers who find themselves in predicaments like these when trying to apply for a mortgage loan should contact a lawyer with expertise in the applicable laws that may affect the transaction.
Potential borrowers can also ask the advice of the lender. Will an FHA loan in such cases be approved? What is typical with that lender? The loan officer may have experience processing loans under such conditions and can explain what traditionally has and has not been permitted.
That may not be the answer the reader was hoping for, but it’s the most realistic one. FHA loan rules are not the only ones that govern mortgage loan transactions. Lender standards, state and federal law, and even local ordinances can all play a part in how a loan is to proceed.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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