Financing in Temecula>Question Details

Ct7, Home Buyer in Temecula, CA

Unemployed spouse- Does her $$$ count as "income"?

Asked by Ct7, Temecula, CA Fri Jul 9, 2010

My current scenario- I was pre-approved for a certain amount, but ideally would like it to be about 20-30k more. My spouse is on the pre-approval as "non-purchasing spouse" due to her credit score. She's a few points away from minimum requirements, but my q is, once she hits the 620 will her "income" count in our favor to increase pre-approval amount? She is currently unemployed and that is set to expire, obviously. Her debt was added onto mine in the pre-approval (rules of having a non-purch sp) but I'm unaware if her unemployment $ will benefit us at all since it's not true income. Please assist.

FYI- This is not an attempt to get to an amount that's out of our pre-set budget.

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George Raymondo’s answer
Regarding the first part of your question, if you are buying in the areas of Temecula, Murrieta, Winchester, Wildomar or Menifee, etc there is a loan program that offers the lowest payment per $1,000.00 than either FHA or FNMA. Unless you're a Veteran, I have found this loan program to be the best overall option for homebuyers in this area providing you income qualify. Take a look at the link below and click on the Official Map next to the photo of the couple carrying boxes and see what areas are available. This loan program will by far offer you the greatest flexibility, highest qualifying loan amount, and the lowest payment and believe it or not NO DOWN PAYMENT requirement.

Best of Luck!
0 votes Thank Flag Link Tue Oct 4, 2011
Hi, Ct7

As already stated, unemployment does not count as income. Once employed, most lenders require 30 days worth of paystubs. Your wife will also probably need an Employment Letter from her new job. It'll need to be on company letter and signed by an authorized company rep. It will also need to state her start date, annual salary, hours and hourly rate, and job stability. Whether she's getting benefits or not is optional. If over time is available it will not be counted since she'll need a 2 years history to use it. Hope this helps.
1 vote Thank Flag Link Thu Jul 15, 2010
No, unemployment benefits are not income and the non purchasing spouse's debts will be counted against yours in California. I assume this is an FHA loan. If she gets to a 620, and can become employed for long enough to produce 30 days worth of paystubs, in a full time permanent position, you may be able to include her income if you can explain the gaps in unemployment and she returns to working in a similar field as before. A barista at Starbucks won't cut it. Getting to 620 is not the problem since a 580 will do for FHA, the lack of income is.

Gregorio Denny
Tripoint Mortgage Group, Inc.
Web Reference: http://WeFixRates.Com
1 vote Thank Flag Link Fri Jul 9, 2010
Would you loan someone money for 30 years who does not have a job? That is what you are asking here. I would not expect it to happen. After all, that unemployment will soon go away yet the debt will remain.

Everything I have seen says that unemployment income does NOT count towards a loan.
1 vote Thank Flag Link Fri Jul 9, 2010
Sorry, unemployment does not count as income. How soon are looking to buy? How soon will she start back working. So many factors play into this senario. Maybe you should wait a little longer unless what you qualify for is yeilding the results you want. Good luck!
0 votes Thank Flag Link Wed Jul 14, 2010
thanks guys....I'll see what happens...just to clarify there's never been any gaps in employment. Maternity leave in 1/2010, was going to return to work in 5/2010 but company (small biz) folded...just unemployed under 2 months but yes, that $ will go away soon so was curious as to how a lender would view it. Thanks for the info.
0 votes Thank Flag Link Sat Jul 10, 2010
That is a question for your loan officer, depending on what type of mortgage you were prequailified for, is how they will look at her income and debt. Simply give them a call and they can assist you.

good luck…

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0 votes Thank Flag Link Fri Jul 9, 2010
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