lenders, help! is it possible to get a mortege in my wifes name?

Question

is it possible for a lender, in Texas, to get a mortgage using my wifes credit and income only? our current mortgages are only in my name, not hers. WE have Identified a property and need to get approved fast! is it possible? this is for a FHA (neither of use have had an FHA before and we will be occupying the property)

*sorry for typo in title, it wont let me edit*

Tyler Rowland · Answer

Thanks Chris!

Chris Mason · Answer

Further clarification!

The "community property" state issue (my market, California, is one of the 9) is only for gov't loans. FHA/VA/USDA.

In all states, including the 9 community property states, you can disregard/ignore spousal debts/liabilities for Fannie Mae loans.

(Target audience of this post is the lurkers finding this on google, not OP or Tyler)

Andrew Postell · Answer

@Michael B. ah, ok.  This is unfortunately a FHA rule.  No lender can get around it.  FHA money = FHA rules.  If you want their loan, you'll have to work in their rules.

The couple of suggestions I might make here is to quiz your current lender that they are using the rental income of the property to help you qualify and that they can have a DTI of 55%.  Sometimes lenders won't do those so just ask....oh, and if your loan officer says something like "I don't know, let me ask"....then find a different lender right away.  He/She should know that answer before you even ask the question.

Feel free to ask anything additional if you need.  Thanks!

Michael H. · Answer

Hi Andrew,

Its because we are buying a duplex, and the FHA down payment is 3.5%. conventional was much higher. we will be living in one of the units for atleast 1 year,  and renting out current SFH

Andrew Postell · Answer

@Michael B. is there a specific reason why you are trying for FHA money here?  Conventional loans in Texas would not require you to carry your spouses debts.

Michael H. · Answer

Update, In texas you can not exclude your spouses debts. you can only keep the spouse off the loan if your income alone can support the combined debts plus the new loan.

Guifre Mora · Answer

Michael you need an investor loan. No income verification.

Tyler Rowland · Answer

Clarification!

9 states in the Union that do not allow you to separate spousal debt when applying for a loan. So in this case, because Texas is one of the 9 states that has what is is called Community Property Laws, we have to include all debts from both married individuals.

So while people are able to keep debts separate within matrimony in other states, the community property laws make couples include all debts with in the marriage.

Hindsight is 20/20, and looking at my first post, I feel embarrassed I was so confident. I also feel learning, which is why I am here on bigger pockets. My apologies @Michael B.

The FHA loan can still be done in one spouse's name only, but all debts held by BOTH spouse have to be considered when determining a debt to income ratio. Which most of the time necessitates more income to offset the debt.

Tyler Rowland · Answer

Yes it is definitely possible for you to get an FHA loan in her name as long as her income qualifies.  One issue we run into a lot is when one spouse is on the loan, we still have to look at any debts that are in both of your names.  But if that is not the issue it can definitely be done.

lenders, help! is it possible to get a mortege in my wifes name?

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