+2 votes
asked in Credit Advice by
I am trying to purchase a home in Wisconsin . The state of Wisconsin is a community property state . I want to exclude my wife from my FHA LOAN. However, she has a lot of debts. She has a full time job . Can her debts not count if she makes a lot of income. Counting her debts and excluding her income with disqualify me due to going over the maximum debt to income ratios on a FHA LOAN . She cannot be on a loan due to a recent foreclosure reporting on a home that was surrendered 6 years ago but was taken out of her name in 2017.

1 Answer

+1 vote
answered by (23.2k points)

Thank you for explaining with such detail.  while it is great news that your wife makes good income, she would need to be on the loan for that income to count. As you describe she has a recent foreclosure recorded in 2017, so at this time she cannot go on your FHA loan. Since Wisconsin is a community property state heard that will always count against your debt to income ratio. I am Mike Gracz from the Gustan Cho Associates. Please contact me on 630-659-7644 or send me an email at mgracz@usa-mortgage.com, feel free to contact me to discuss this situation in more detail.  You may be able to qualify for a NON-QM Loan. Please see What Are NON-QM Loans.  Other community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. You may also opt-in in Alaska. 

commented by (40.3k points)
Thanks MIke for the detailed answer. I will also make a note on the list of community property states. Its good to have it handy.