Priority Member Qualification without Spouse

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  • #76937
    mdterp
    Participant

    Does the wording below mean I can try to qualify as a priority member without my spouse’s income if I get qualified using only my income? Do I have to include my spouse’s income to determine if I am a priority member even if he will not be on the qualification for the mortgage (just a house member)?

    Wording:
    Priority Members
    Low-to-moderate income Members (i.e., borrowers and co-borrowers) whose combined income is equal to or less than the median family income for the MSA where they are purchasing a home.

    Non-Priority Members
    Members (i.e., borrowers and co-borrower) whose combined income is greater than the median family income for the MSA where they are purchasing a home.

    #76941
    Nelsont
    Member

    Yes and no. Your spouse might not be a household member. They could be required by state law depending on the state you purchase in to be a deed holder without being a loan holder (common property states).

    If your spouse does not go through the program with you then their income cannot be used to determine your affordability.

    However your spouse’s debt will negatively impact your affordability so keep that in mind .

    #76942
    mdterp
    Participant

    Thank you for your response. Luckily we do not currently or plan to move to a common property state. Are you saying I have to factor my spouse’s debt into my debt-to-income ratio even if they are employed? How does my spouse’s debt negatively impact my affordability?

    #76945
    Nelsont
    Member

    Yep. Regardless of how much they contribute to the household they do add expense no matter how little. You will not be expected to evict them in order to pay the mortgage. So if your spouse has a car loan or student loans for instance they now factor into your DTI.

    #76946
    Kristijay
    Participant

    @mdterp. You can qualify as a priority member using only your income. Several married members have chosen to go that route to avoid the non priority limitations. As a house hold member, your spouse’s income and credit will be evaluated to make sure that they can cover all of their own debts. If their debts are such that their income is not sufficient, then and only then will they affect your DTI.

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