It sounds like you are separated from your husband. Texas is a community property state. Your assets are your husband's, your debts are your husband's, his assets are your assets, and his debts are your debts. What does this mean? If you think you own a car by yourself, just because only your name is on the title, you're wrong -- he owns it, too. If you ever divorce, you will come to realize this because those community assets will have to be listed and divided.

Similarly, if he owes a big chunk of money to a credit card company, you owe it, too. So, when they tally up your income and compare it to your debts, they will include his truck payment and his credit card payments even though you're not on the title to his truck and don't have a credit card.

As to the child support, that is income, not debt. Yes, his debts will include the child support, but it doesn't change the overall picture. Let's say he has a $350 truck payment and a $200 credit card payment plus $1000 child support, and that you have $280 car payment and a $120 credit card payment. Your salary plus the $1000 would be your income. Let's say you make $3000 a month. Your income total would be $4000, of which $400 (10%) would be for your other debt.

Ignoring him for a second, you could get a loan with a monthly payment of $1200 approximately (about a $145k house), since the combined debt and mortgage payment would be roughly 40% of your monthly gross including child support.

BUT, when you add his debts in his $350 + $200 payments drag down your maximum loan payment from $1200 to $650, which will get you only a $75k house. Of course, you're not paying for his truck or his credit card, but the bank doesn't look at it that way. If he defaults, the auto loan company can come after you. Same thing if he defaults on his credit card, or if he stops paying child support.

Also, he will be required to sign off on the Deed of Trust when you close, and in order to get the loan, the mortgage company will pull his credit (mandatory for FHA loans). You'll have to get his agreement to pull his credit and that he will come and sign papers at closing.

So, look at his finances as well as your own, because every lender is going to do that, too.

Lucy,

Sorry to hear that you're not in a home yet. It has been a long time. Congrats on bringing up your credit score. You are above what the minimum requirements are these days.

If you are going to consider your husband's income to qualify for the home then his debt will have to be considered. Did this broker qualify you for 120K based on your income alone?

It doesn't sound like it.

Naima
214-289-8555
Naima@Sumner-Realty.com

Unless your entire file is reviewed and etc. difficult to make a professional comment. If a loan officer stated he could exclude your husband take that route.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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