Applying for FHA Loan Non-Borrowing Spouse Debts Included

In community property states, FHA Loans require non-borrowing spouse’s debt obligations that appear on their credit report to be included in the borrowing spouses debt-to-income ratio required to qualify for a FHA Loan.  So this means even if your husband or wife is not going to be a co-borrower on the FHA Loan, his or her car payments, credit card payments, student loan payments, etc… have to be included in the qualification process.  However it is very important to note that the credit quality of the non-borrowing spouse is not a factor in deterring loan approval.  So in other words, the spouse that is not going on the loan can have very bad credit and it will not affect the FHA Loan approval.   It is often the case that the reason an FHA borrower chooses to not have a spouse go on the loan as a co-borrower is because his or her credit is poor and will affect the approval of the loan.

The following is a list of community property states:

  • California
  • Arizona
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

Remember, it is only items that appear on a credit report that must be included in a borrower’s debt ratio to qualify for an FHA Loan.  Items such as cell phone bills, insurance bills, utility bills, etc… are not included.

Also, if a non-borrower spouse has an excessive amount of collection accounts that appear on their credit report, the FHA underwriter may want these collections cleared.  But this is on a case-by-case basis.

And as a refresher, here are some highlights of the FHA Loan, the very best loan available today for those with less than 10% down payment:

  • Only 3.5% down required and that can come from a gift from a relative
  • Flexible underwriting guidelines
  • Not credit score driven
  • Low 30 year fixed interest rates
  • Non-occupying co-borrowers are OK
  • No cash reserves required
  • FHA 203k renovation loans available where part of your loan includes money to fix up the house!

If you have any questions at all about getting approved for a FHA Loan, please email me at or call at 858-922-7899.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA Loan Specialist)


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