Will my spouses rental properties affect my mort qualification?

Question

My spouse has two mortgages (soon to be 3 after this BRRR). I have zero mortgages. Title for two properties are in his name only. Title for the BRRR will be in both our names. We file taxes jointly.

If I apply for a conventional mortgage without my spouse as a co-borrower, will his rental properties affect my mortgage qualification since they show up on our schedule E and we file joint taxes?

Account Closed · Answer

Chris is correct, the only impact this has is if you applied for a government loan in a community property state, which would make the lender have to run your wife's credit even if you applied for a loan individually in your name.  If you are applying for a conventional loan, then it will not.  If you provide tax returns to the lender, you would also need to provide the note and deed for each property your wife owns to show you are not obligated nor do you have ownership in any of her properties

Ham Merritt · Answer

@Natalie Kolodij & @Kari Piecuch Only if it is a government loan will it affect the application. FHA, VA, & USDA are government loans. Anything other than one of those will not affect the application regardless if the state is community property or not.

Natalie Kolodij · Answer

Washington is community property -I think it will affect your application

Kari Piecuch · Answer

Thank you @Chris Mason

Chris Mason · Answer

Will not impact you unless you try to go FHA/VA and happen to be in one of the 9 community property states.