November 5, 2014
A reader asks, “I live in a community state property. My husband does not have a social security number to run his credit. How can I proceed with a FHA loan without being able to run a credit report on my husband?”
FHA loan rules are very specific when it comes to the identity and documentation requirements for all parties to be obligated on an FHA home loan. According to HUD 4155.1 Chapter One, Section B, the following applies:
“All borrowers, including United States (U.S.) citizens, must have a valid Social Security Number (SSN) and must provide evidence of that SSN to the
lender.
The lender is responsible for
• documenting an SSN for each borrower, coborrower, or cosigner on the
mortgage
• validating each SSN either through
− entering the borrower’s name, date of birth and SSN in the borrower/address validation screen through the FHA Connection (FHAC) or its functional equivalent
− examination of the borrower’s pay stubs, W-2 forms, valid tax returns obtained directly from the Internal Revenue Service (IRS), or other documentation acceptable to FHA, or
− use of a service provider, including those with direct access to the Social Security Administration (SSA), and
• resolving, if necessary, any inconsistencies or multiple SSNs for individual borrowers that are revealed during loan processing and underwriting.”
Those are the rules for all borrowers. In the case of this reader question, the person without a Social Security number may not necessarily be a co-borrower, but still required to have credit information developed due to state community property laws.
In cases like these, the borrower may need to work closely with the lender to establish the required credit and income data. There are many circumstances where a borrower’s spouse may be without a social security number–depending on issues such as citizenship status, employment location or other factors, the lender may need to handle such issues on a case-by-case basis.
If there is no credit or employment record for the spouse, this may be taken into consideration but is not necessarily a barrier to FHA loan approval. Much would depend on the circumstances of each individual case. Borrowers who need assistance or advice in this area should contact the FHA at 1-800 CALL FHA for assistance or speak to a loan officer to learn what standards that financial institution has that may apply.
Do you have questions about FHA home 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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