Updated over 4 years ago on . Most recent reply
Community Property Lending Scenario
My wife and I live in TX a Community Property State. We currently own our home (Property 1) and both of us are on the mortgage and title. We would like to convert our current home into a rental and purchase another home (Property 2) using a conventional mortgage (NOT FHA, USDA, or VA) most likely Freddie Mac, due to my wife's new job (still in TX). She would be the only applicant on the new loan, I will not be on the new loan. How would the lender treat the debt & income from the rental property (Property 1) as it relates to her qualifying for the new property (Property 2) by herself?