Listing spouses debts and income?

[Jon Passow]

I'm gearing up to get all my financials documented so I can start the process of finding lenders. When it comes to what debt is held, do I only list debt in my name (which would be the house mortgage that's in both my wife and I's name) and my own income, or do I list the debt that is in my wife's name as well (she has a student loan, and the credit cards are in her name) and her income?

[Chris Mason]

Originally posted by @Jon Passow:

I'm gearing up to get all my financials documented so I can start the process of finding lenders. When it comes to what debt is held, do I only list debt in my name (which would be the house mortgage that's in both my wife and I's name) and my own income, or do I list the debt that is in my wife's name as well (she has a student loan, and the credit cards are in her name) and her income?

For Gov't loans (FHA/VA) in community property states, which California is, the spouse's debts count either way.

Aside from that, either or both of you can apply either way. Some couples like to do them in individual names so they can game the system and get past the Fannie cap of 10 mortgages, to 20 (10 each).

It's easiest to apply as joint, and then let the lender work it up all 3 ways: you alone, other spouse alone, and joint.

Fun historical context: back in the day women had a really hard time getting anyone to lend them money by themselves, without their husband as coborrower, and a mortgage would have been considered crazy-talk. This was back when Jane Smith did not have credit, only Mrs John Smith did, and it was joint credit only. But he could establish distinct and separate credit. The right to apply individually (& have an individual credit report), even while married and simultaneously female, was one of the things that women's rights folks back in the day had to fight for. And now it's a loophole around a Fannie guideline. :P