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Is it mandatory for husband and wife to provide documentation and credit pulls when obtaining a mortgage, or can income earner do it alone if so desired? Thanks.
I have had 3 mortgages ( in the past 4 yrs), all have been just on my credit and income. This was before the "meltdown" though. Not sure if that has changed anything. Not sure why it would though. If you alone can prove you can make the payments, then I don't see why they wouldn't give it to you. So, YES, you should be able to do it alone provided your income can cover it and your credit is good. Remembering it they always gave me a choice if I wanted to use my wife's information.
You can still just do the loan in one spouse's name - nothing has changed. One thing to be aware of when doing government loans when living or buying in a community property state - debt payments of the non-borrowing spouse are still included in the debt to income ratio.
Thank you all so much. So in NC, not a community property state, the non-borrowing spouse will not be required to produce a credit report for debt-to-income ratio information nor any other information? If this is the case, this would be a definite advantage. Thanks again.
This isn't quite a one-size-fits-all question. Different types of loans have more stringent (or lenient) application requirements. Example: FHA will allow one spouse, USDA/Rural will not. Mainly because of the income limitations on some programs. They must account for the entire household debt/income to make sure you conform to their guidelines. Operating outside of these guidelines and extending support to non-qualified borrowers would undermine the program, essentially taking money away from those who really need it.
Aside from that, most lenders would prefer to see the worst case scenario in terms of income/debt. That way, they're not playing as much of a guessing game to "can they or can't they repay?"
Thank you all so much. So in NC, not a community property state, the non-borrowing spouse will not be required to produce a credit report for debt-to-income ratio information nor any other information? If this is the case, this would be a definite advantage. Thanks again.
This isn't quite a one-size-fits-all question. Different types of loans have more stringent (or lenient) application requirements. Example: FHA will allow one spouse, USDA/Rural will not. Mainly because of the income limitations on some programs. They must account for the entire household debt/income to make sure you conform to their guidelines. Operating outside of these guidelines and extending support to non-qualified borrowers would undermine the program, essentially taking money away from those who really need it.
Aside from that, most lenders would prefer to see the worst case scenario in terms of income/debt. That way, they're not playing as much of a guessing game to "can they or can't they repay?"
If you are using the USDA DIRECT loan,they will allow it.
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