Financing in Modesto>Question Details

Cori, Home Buyer in Modesto, CA

Why if I am separated why am I being told that I have to list my husband's debt to purchase home alone?

Asked by Cori, Modesto, CA Sat Jun 13, 2009

My husband and I are separated currently. I am wanting to purchase a small home or condo by myself and I am being told that I have to include my husband's debt, which is quite large, but not able to use his income. If I was to do a legal separation would I be able to aquire financing without showing his debt or do we have to be divorced?

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Almond Farmer’s answer
I have included the HUD handbook guidelines that were emailed to me as I ran across this myself. If you need more info, call Summit Mortgage Corporation. They just did my loan and those guys are awesome.

Non-Purchasing Spouse
Chapter 2
Mortgage Credit Guidelines
Page 2-08
A credit report, which complies with HUD Handbook 4155.1, Rev-5, Paragraph 2-4 is required on a non-purchasing spouse residing in a community property state or when a property to be insured is located in a community property state. A valid and reliable verified credit profile of the non-purchasing spouse must be established and their debts included in the borrower's ratio unless the lender can document, as regulated by state law, that the obligations may be excluded.

Although the non-purchasing spouse's credit history is not to be considered a reason for denial, it must be obtained in order to determine the debt-to-income ratio of the borrower. If there is an indication or discrepancy regarding the non-purchasing spouse's social security number or credit status the lender, remains responsible to exhaust all possible means to resolve the issue through direct contract with the Social Security Administration, a service provider with direct access to the Social Security Administration and/or the credit reporting agency.

The spouse's release to order and receive a credit report must be obtained by the lender. If the non-purchasing spouse refuses to provide authorization for the credit report, the lender would be unable to establish the borrower's liabilities, thereby making the loan uninsurable if it is not closed in accordance to FHA's rules, regulations, policies, procedures, and guidelines.

Please see: HUD Handbook 4155.1, REV-5, CHG-1, Paragraph 2-2d.

Good Luck!
1 vote Thank Flag Link Sat Jun 13, 2009
My understanding is in CA, untill you have proof that you are not responsible for any of his debt, it has to be assumed half of it is yours. You will also have to have him sign off ,that he will have no claim to your new property. I am only giving my personal opinion as how the court could rule it.
0 votes Thank Flag Link Sat Jun 13, 2009
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