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Can My Spouse Apply Alone For An FHA Loan?

November 24th, 2014 by [shareaholic app="share_buttons" id="27157108"]
If a married couple has an extremely high debt to income ratio, can only one spouse be on the mortgage loan and leave the other spouse off? This is a situation where some spouses may have less credit but double my income and very low debt to income ratio. Is it possible that the spouse can qualify using only their 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.

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