Loan officer says "House Hold Income" means ...?

Question

I'm trying to get approved for a mortgage under just my name. My fiance and I will not be married until a month after we close on the house and I make enough money on my own to qualify.

When we first talked to her she said my debt to income ratio is fine, and I make enough monthly so she was going to send in the request using only my information.

Well today she says the people she talked to says they have to use our entire "house hold" income even if my fiance and I aren't married by closing. I brought up the situation to her of "what would happen if we didn't end up married?" She told me that it didn't matter and household income meant anyone's income living in the house, including even if we had kids. The kid's income would be taken into consideration.

What?? That can't be right, can it??

Answer 1

Shes wrong!  The only time they do that is if you are going for an R.D. loan.  (Rural Developement) or a loan for lower income people who have to make less than average.  If you are doing a conventional or FHA or VA loan they don't care what other family members make at all, as long as you can qualify on your own.

Answer 2

If I was you I would have never said anything about your fiance and I would consider a different mortgage lender, when they ask you at the time being before close will there be any other that you moving in say "no" once you have closed the deal than you can do as you please.

Answer 3

* by not married yet, you are a single person and the household income mainly is yours.

This loan should be approved or not solely based on your income.

* so simplify the matter, redo the paper works either leave everyone else out - if you by yourself qualified - or add your fiance' in and he/she can claim the property if a common one.

A household income means total income of everyone living under such roof (sometime, one even add children's to the total).

Answer 4

What type of loan are you trying to get? A rural development loan? That may be the case if it is an RD loan.

Answer 5

If you're going to close on the mortgage prior to becoming

married, there is no way you can be forced to declare anyone

elses' incomine as part of *your* mortgage application. Some states are "community property" states that essentially hold that all debt entered into by either spouse while married is "joint" debt. If you close before marriage, that doesn't apply

to you.

I would tell them your household consists of you. Period.

Your income *is* your hosehold income. Inflating your

hosehold income was one trick used in the past by lenders

to get people into loans that they couldn't really afford.. if

you can't do it on your own income, I would back off.

Answer 6

Whether or not a non-applicants household income is considered at all depends on the requirements of the program you are applying for.

In Ohio, if you are applying for a loan under the housing finance agency's mortgage revenue bond program, they will count the income of any adults residing in the household whether or not they are coborrowers when check to see if the household income exceeds the income limits for the program.

I had a similar situation where a lady and her domestic partner would be cohabitating. My borrower was applying individually, but I had to include her partners income for purposes of checking their household income. They were under the limit so it was no big deal; just a little awkward.

Another young lady was qualifying by herself, but mentioned her non-borrowing boy friend would be occupying the home. When I inquired about his income, it would take them over the bond money limit so I went with another program. Better to catch it up front.

There are plenty of programs that do only count the borrowers income in checking the income limits, but you need to talk to your lender to be sure of the requirements and if including your fiancee's income takes you over the limit for the one program, what are your other options.

To omit his income when the loan officer knows that he intends to reside in the household would constitute loan fraud.

Hopefully your loan officer knows the program well enough not to ask for something that they really don't need and they are prepared to flip the loan to another program that would work better if there is a problem including your fiancees income.

I hope you found this answer helpful.

Answer 7

that is b___ S----. If you qualify on your own they need to close -- they may want some additional reserves or something else but in no way is that correct

Unless she put him down as being on title and put his job info on the application

I am a Mortgage banker in TN & KY

Answer 8

If mortgage only under your name, that means Loan officer is asking how much  your income is. The private lender can consider your fiance's income if you both will be paying the mortgage together , but i dont think this will be the case since you are not married by law.

Answer 9

Household Income means the net money that is coming into the house from all sources.  Yes, because more people, more expenses to be spread around the income.

Think of it this way--if you invited five people over for dinner you would have to buy more food vs two people over for dinner.  

Your debt ratio might be find, but how about the other people living in the house with you?  What is their debt ratio to yours--better or worst?