How is DTI calculated when mortgage is in spouses name?

Question

I own a SFR rental property where I am the only one on the mortgage but title is held Jointly with my wife.  My wife would now like to get a mortgage of her own :-).  For the purposes of DTI calculations, will the mortgage that is in my name be counted as her debt too?

Reid Chauvin · Answer

@David Mirza - as mentioned you will likely have to prove that it's only you on the note, or that payments are being made for it only out of your account for the debt to not be counted against her. If it's a rental property and you have it leased out, the rental income will likely offset the debt anyway so kinda a moot point in my mind. I'd just go path of least resistance to qualify personally (i.e. whatever is easier for you to prove), hopefully you have a competent lender assisting you two.

Chris Mason · Answer

Her DTI will factor in the property taxes and homeowner's insurance, but not the mortgage. You may have to prove that you've been paying it on time, though.

David Mirza · Answer

Sounds like we have one vote for yes it's counted as her debt even though she's not on the mortgage and one count for no it isn't counted as her debt.  Anybody want to be the tie breaker :-)

Chris Seveney · Answer

@David Mirza

My wife and I are in this situation and I do not count for property she has mortgage on and we co-own it

One key point to be able to show is she does pay the mortgage on that property

Alex Gunnerson · Answer

@David Mirza  the mortgage on a property that is held jointly with a spouse will typically be counted as debt for both individuals. Even though the mortgage may be in only one person's name, both individuals are considered to have an ownership interest in the property and are responsible for the debt.I would check with the lender to see what documents they need, each lender might have different requirements.