24-20: FHA Non-Borrowing Spouse Clarification

03/04/2024
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FHA requires the debt of a non-borrowing spouse (NBS) to be included on the URLA and included in the qualifying debt ratios if:

  • The NBS currently resides in a community property state; or
  • The property being purchased is located in a community property state.

Pennymac confirmed the above with FHA and have updated our guidelines accordingly. Please refer to the examples below for guidance.

Example 1:

  • The NBS resides in California at the time of application, which is a community property state, and the new primary residence (subject property) is in Georgia, which is not a community property state.
  • The NBS’s debt must be included in the qualifying ratios

Example 2:

  • The NBS resides in New Jersey at the time of application, which is a non-community property state, and the new primary residence (subject property) is in Texas, which is a community property state.
  • The NBS’s debt must be included in the qualifying ratios

Please contact your Sales Representative with any questions.