If the investments are in both of your names, you would be fine. However, if the investments are in your husband's name alone, then you would need a power of attorney from your husband authorizing you to sign on his behalf to make the loan work. He would need to be on the loan/title for a lender to use the income to qualify.
The lender looks at the income not only from a qualification stance, but from an access point of view as well.
One BIG item not discussed yet - are you trying to do this without your husband knowing? CA is a community property state and your husband will be required to sign a Quit Claim deed prior to your taking ownership of the home. If he's overseas then he'll have to sign the form at a US Embassy. I ran into this with a contractor working inside the Green Zone in Baghdad. Husband had to walk across the street to get the embassy to notarize the Deed.
What's a Quit Claim? It's a form the non-borrowing spouse signs to indicate they understand they have no ownership interest in the real estate being financed.
You won't be able to buy without the signed Quit Claim.
California is a community property state soâ€¦is the income community property or is it the separate property of your husband? If it is community property you can use it to qualify for a loan. If separate property, you cannot use it.
In any event, as Michael Mullin pointed out (thumbs up to him), you will most likely be unable to finance the property in your name without your husbands signature. That would be true even if the income was all yours.
You need to talk to an experienced local mortgage professional. I suggest John Dutra of Summit Funding. Call John at 510-364-0764.
As is the case in most instances, there is no single answer to your questions based on the information provided. I concur, under certain circumstances with both the other answers.
In general you need to have the income to qualify, there are programs depending upon your situation where the investment income could be used to qualify based upon the down payment you are suggesting.
I would highly recommend you contact a Mortgage Professional to guide you through this process. If you don't know one, please feel free to contact me and I will be happy to guide you.
If you file joint tax returns and you get a letter from him stating that you have the right to use the income - there may be a way to work out the loan. You need to get to a loan officer to clearly explain the situation to see if the underwriters will accept the income.
Bring 3 years of tax returns with you so the Loan Officer can copy them to review with the underwriter. Also bring copies of the asset statements for the assets that provide the investment income.
You will have to be able to prove that there are sufficient assets to throw off the income necessary to support the mortgage debt - and illustrate that the income will continue for at least 3 years. You should have sufficient reserves in cash after down payment to cover payments for at least a year.
MD/VA and DC