April 26, 2013
A reader asks, “I am married and I have an extremely high debt to income ratio. On the other hand my husband has less credit but double my income and very low debt to income ratio. Is it possible that an he qualify using only his income and credit to qualify for an FHA loan?”
There are several factors which may apply in a situation like this. Borrowers should know that when applying for FHA home loans, credit scores, employment history, verifiable income and other factors will figure into loan approval.
That said, assuming all the above requirements are met, the basic question is whether a borrower can apply for an FHA loan independently of the spouse. This depends on community property laws which may apply in the state where the loan is issued.
Community property laws concern the disposition of debts and property within the context of a marriage. Community property states generally may require both spouses to be obligated together on a real estate loan.
For this reason, borrowers should discuss community property issues with the lender and/or a lawyer where appropriate to make sure all rights and responsibilities are understood. In many cases a simple discussion of community property laws with the lender may suffice–if the borrower simply needs information. If the borrower needs legal advice, consulting a lawyer is the best course of action.
Unfortunately there are no quick answers to this question–not all states have community property laws, and those laws may differ from state to state. For more information on this issue, speak to a loan officer or the FHA directly by calling 1-800 CALL FHA.
Do you have questions about FHA loans? Ask us in the comments section.
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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