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Community property help quickly!!


counselor4kids
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We live in Arizona (community property state). My husband scores and income are high enough to qualify for a mortgage, but the loan applications I have seen say that the debts of the spouse will also be considered when figuring the ratios. A lot of the debt was incurred after we married. Is there any way around this? Is there any way to have my income considered if my debt must be included? This sucks!

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It depends on if the credit obligations in question are in both of your names. If not, then your husband can apply for a loan in his name only, but you will only be able to use his income for the loan.

Your name will have to be put on the title of the home when it is purchased, many states are like this, Texas, Florida etc.

Charles

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Thanks Charles. It is my understanding that in the 7 community property states my husband and I are equally liable for one another's debt. I have credit cards and a car loan in my name only, but the laws seem to say that these debts would be considered in his ratios even if the mortgage loan was only in his name. Do you have any further insight as to whether this is correct? I noticed at the top of the generic loan forms that there is a box to check regarding community property.

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Arizona maybe different than others, but I just did a loan in Texas that closed last week, doing another that should close next week, and have done several recently in Florida that did not involve the spouse's credit situation.

I will verify with some lenders that this holds true with Arizona and get back to you.

Charles

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