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Ask our community..If I apply FHA , can I split the household debt between , myself and my boyfriend

This is my first home attempt, and new to the process. I am wanting to apply for a FHA loan, I barely meet the credit requirements, but I meet everything else. He, is self employed has beautiful credit , but can't meet the other requirements. The question is concerning declaring the debt to income ratio, can I split everything now in half or do I claim everything that has my name, ie utilities and rental agreement?
  • March 25 2011 - Boulevard Heights
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Answers (7)

Your income, credit score and your lender will determine your DTI approvability range.  Some lenders may have overlays that allow you to exceed FHA norms based on your good credit history.  However, all liabilities in your credit report are yours and will be included in your ratio.
  • March 25 2011
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Profile picture for wetdawgs
Monthly Utilities and rent are not considered part of your debt, but simply monthly expenses.   Debt is more unpaid balances on credits cards, student loans, car loans, etc.    Of course, if you've skipped payment of monthly expenses, they will add to your debt.
  • March 25 2011
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unfortunately in general you can't pick and choose which debt to put on your side and which debt to assign to your boyfriend.  If you're name is associated with the debt, regardless of why it was incurred, it's yours.

Some lenders will be able to work with that and take the whole story into account. Feel free to contact me if you would like some more information and a couple of places to start looking.
  • March 25 2011
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Assuming you both are applying for a loan, then you will apply on a separate loan application, and he'll do the same.  The loan officer will tie both files together to determine your combined income and debt, and view the lowest of your mid-fico scores, in order to qualify you for a loan.  Hope this helps.
  • March 25 2011
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He, is self employed has beautiful credit , but can't meet the other requirements

In order for your BF to be of help his income has to be counted. Even though he has a much better score than you, the lowest middle score is used which will be yours. You state he cant meet the other requirements
( besides credit score). How long has he been self employed and how much income does he declare? Not sure how you are calculating the debt ratio but it will include the total new housing payment, plus what is reporting on your credit report (s), does not include utilities or rental agreement.     
  • March 25 2011
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THis is a question for the lender you will be working with; they have many different scenarios that may help you to qualify with and or without the BF income or household debt assignment/split...
... depending on what you need to qualify.. they will help you determine what you need to factor in as yours.... 

good luck !
  • April 02 2011
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Get the loan and buy the house on your own merit.  Then have your boyfriend pay you rent and share the bills as preaggreed upon.  When you get married then you can add him on to the deed of the house. This formula makes for better long term relationships.

  • April 02 2011
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