FHA Loan Articles
News, updates, and explanations to keep you informed.
Spouse Income and Child Support
We get many questions about VA loan applications including whether or not a borrower can use his or her spouse's income to qualify for the VA mortgage.
Here's a good example of such questions: "Can I use my wife's income if she has been employed less than 2 years? And also, can I use child support she is receiving for another child in obtaining a better chance at approval?"
The VA loan rules that cover these issues are found in VA Pamphlet 26-7, the VA Lender's Handbook. Among many other issues, these rules specify the type of income defined by the Department of Veterans Affairs as "verifiable income" which can be listed to get VA loan approval.
But VA loan regulations aren't the only laws on the books that cover these issues--state and federal laws also play a part in determining whether or not spouse income can be included on the loan application and under what circumstances.
There are many questions that must be answered--is the spouse obligated on the new VA loan? If so, all income from the spouse would be considered as with any other co-obligor on the mortgage.
When it comes to child support, the spouse is not required to declare such income. However, child support cannot be counted unless it has been declared. Under the law, It's the borrower's decision; the Fair Housing Act forbids lenders from requiring child support payment details.
In cases where the spouse is not obligated on the VA loan, the laws of the state may determine whether or not the spouse's income may be counted--these laws are often known as "community property laws" and are based on the shared financial obligations the married couple has.
If the borrower resides in a community property state, spouse income may be counted. The previously mentioned child support rules apply in these cases. If the borrower does not reside in a community property state, chances are that the only way spouse income might be counted is by having the spouse obligated on the new loan. Check with your loan officer to see what state or federal laws might apply in your specific circumstances.
You can also contact the Department of Veterans Affairs directly at 1-800-827-1000.
FHA NEWS and RELATED ARTICLES
When applying for an FHA home loan, some lenders may ask for tax paperwork as part of the application process. Some borrowers may wonder if this is legal, or an acceptable practice for home loans in general.
There are many questions about the official FHA loan rules for occupancy for single-family home loans. According to FHA rules, a borrower must occupy the home purchased with a single-family FHA loan as a personal residence as a condition of loan approval.
After the housing market crisis of the previous decade, many mortgage borrowers found themselves having trouble making their monthly payments. In some cases, borrowers just walked away from the mortgage completely and allowed the home to be foreclosed upo
The FHA has announced it would accept electronic signatures (also known as e-signatures) on several FHA home loan documents. The new policies are found in detail described in FHA Mortgagee Letter 14-03.
Some of your FHA loan closing costs may be financed, and some may--after being negotiated between buyer and seller--be paid by the seller within the boundaries of the FHA loan programís rules. The borrower can also pay some closing costs out of pocket.