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  • SIZK
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FHA Loan while separated?

My loan officer at the last minute realized I checked separated on my loan app and that they are going to have to attach my soon to be ex-wifes credit report to my loan application.  This will obviously put my debt to income ratio over that top and killing my loan.  This is after findind the house and doing inspections and basically 2 weeks to closing.  Anyhow...

 

He says we are dead in the water until my divorce is finalized(which is in 4 months).  Is this true?  Are there any alternatives?

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July 20 2008 - US
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What state do you live in?

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July 20 2008
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  • SIZK
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CA

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July 20 2008

Cali is a community property state.  What that means is that until your spouse is no longer your spouse you have to include her debts in qualifying.  Regardless of loan program.

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July 20 2008
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  • SIZK
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bugger!

 

Oh well, four months isn't that long I suppose.

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July 20 2008

I have had a house in my name, without hubby for qualifying, he has a house in his name, without me for qualifying, and we have a house in both our names.  Nothing funny or illegal about it.

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July 20 2008

I've seen people qualify without their spouse on the loan lots of times.

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July 20 2008

In community property states you need to include the spouses debt in qualifying most definantely on FHA.

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July 20 2008

Must be an FHA thing... I don't really do FHA business so I wouldn't be qualified to comment on that aspect of it.

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July 20 2008

FHA Guideline:

 

D. Nonpurchasing Spouses. If required by state law in order to perfect a valid and enforceable first lien, the nonpurchasing spouse may be required to sign either the security instrument or documentation evidencing that he or she is relinquishing all rights to the property. If the nonpurchasing spouse executes the security instrument for such reasons, he or she is not considered a borrower for our purposes and need not sign the loan application. In all other cases, the nonpurchasing spouse is not to appear on the security instrument or otherwise take title to the property at loan settlement.

Where there are nonpurchasing spouses who sign security instruments relinquishing their rights to the property pursuant to applicable state laws, these nonpurchasing spouses do not have to sign the mortgage note. Signing the security instrument for such purposes does not make the nonpurchasing spouse a co-borrower.

Except for the obligations specifically excluded by state law, the debts of the nonpurchasing spouse must be included in the borrower's qualifying ratios if the borrower resides in a community property state or the property to be insured is located in a community property state. Although the nonpurchasing spouse's credit history is not to be considered a reason for credit denial, a credit report that complies with the requirements of paragraph 2-4 must be obtained for the nonpurchasing spouse in order to determine the debt-to-income ratio.

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July 20 2008

Cali is a community property state. What that means is that until your spouse is no longer your spouse you have to include her debts in qualifying. Regardless of loan program.

I was responding to that comment Salem.  I haven't seen an FHA loan in ages.

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July 20 2008

On a conventional loan it looks like the spouse can sign a document waiving their sposal rights.

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July 20 2008
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Is everything still up to date?i live in texas which is also a community propwrty state.  Will me having a cosigner change anything?
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February 19 2013
You might want to start a new question with your specifics, as posters often simply ignore posts this dated. 
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February 19 2013
 
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