Let’s say my spouse and I are buying a home together. Let’s say their credit isn’t where it needs to be. They have a bunch of debt and bad collections and all that kind of stuff. Do I have to add that to my debt-to-income ratio?
So if we’re doing an FHA loan, all that debt that they have would carry forward to my side, and then I would have to be able to qualify with my income. If I was a veteran and we could show that all that happened before our marriage, then we could eliminate that.
If it’s conventional, then I would just leave them off the loan. Now legally married, they still would get ownership in the house with none of their liability and nothing would have to carry forward on my side.