FHA Home Loans In Arizona – Community Property Debts
When using an FHA home loan to purchase or refinance a home in the state of Arizona, one very important consideration is the fact that Arizona is a “community property” state.
This distinction means that on this type of loan, if you are married, then your spouse’s debts count against you for qualifying purposes, whether or not they are listed on your loan application. That means that any monthly payment that appear on either spouse’s credit report count as a debt, even if only one spouse is on the loan application.
Furthermore, if your spouse is not on your home loan application, then you are also not allowed to use any income they earn as well.
However, there is one important caveat in the state of Arizona as well. If you can prove any of the debt in a spouse’s name was obtained solely before a marriage, then those debts can potentially be excluded from being counted.
For example, if a couple recently married and either the husband or wife has a large amount of student loans obtained prior to the marriage, you may be able to exclude all of that student loan debt.
Items such as credit cards are more difficult to prove, since the cards could have been opened prior to being married, but the debts could have been obtained after the marriage. However, when it comes to installment loans like student loans, auto loans any other consumer loans, then it is much easier to prove an origination date.
As always, it’s best to speak to a licensed lender who can properly asses your entire situation, but when it comes to the community property debt rules in Arizona, it’s important to know the pre-marriage spousal debt exclusion is something that is very often overlooked.
For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
Strategic Mortgage, LLC – AZBK#0909514 - NMLS#158804 - Equal Housing Lender
Vasilios Kamboukos – NMLS#160440
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