How does a legal separation affect USDA qualifying?

Qualifying for a USDA Loan after a Legal Separation.

Welcome back everyone shawn stevens here again with metroplex mortgage services and another usda loan pro video quick tip how do you qualify for a usda loan after a legal separation the separation process can require many decisions such as whether to buy or rent while this may involve stress it is important to not overlook mortgage qualifying details which

Includes understanding usda loan requirements when a separation is involved in today’s short video i will share key points and explain how to qualify for a usda loan after spouses separate now before we get started don’t forget to take advantage and download our usda blueprint for success with the link below this free guide is designed to walk you through

The usda process step by step and is a great resource for both home buyers and realtors alike how does the income of a separated spouse affect usda loan eligibility as a starting point remember that a key part of usda loan qualifying requires income calculation of all household members which also includes the applicant’s spouse this is important because in

Cases where spouses may have agreed to separate but are still living together we must continue to count both spouses income towards usda income limits as you can imagine this can be a touchy subject if the spouses are not on good terms since it may be difficult to obtain the required documentation from the non-borrowing spouse however usda guidelines offer

Flexibility and state the following include the income of an applicant spouse unless the spouse has been living apart from the applicant for at least three months for reasons other than military or work assignment or court proceedings for divorce or legal separation have been commenced thus even if you have not filed for divorce or a formal legal separation


Provide you have been living apart from your spouse for at least three months this could allow you to qualify for a usda loan without needing to document their income additionally if spouses have not been living apart for at least three months but court proceedings for divorce or legal separation have been commenced this could be another way for you to qualify

For a usda loan without needing to document your spouse’s income however while this guideline removes requirement for documenting that income a legally married spouse may still be required to execute certain documents at time of closing depending on state law this may apply even though they are not on the loan or on title of the property what paperwork will

Be required to support the separation of spouses usda also states the following for the required documentation when showing that spouses have been living apart evidence to support living apart for three months may include but is not limited to an apartment lease bills or bank statements in their name alone delivered to a different address etc this guidance

Applies to domestic partners significant others and fiances that are currently living with the applicant as a household or family unit also if you have commenced court proceedings for divorce or legal separation be prepared to have any legal separation or divorce paperwork prepared in summary while it can be possible to qualify for a usda loan when spouses are

Separated different guidelines will apply to the situation please note that laws regarding legal separation can vary from state to state and any information discussed in today’s topic is solely meant for mortgage qualifying purposes and not for legal advice remember do not let the details overwhelm you because that is what we are here for as a usda approved

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Lender we will walk you through the usda qualifying process step by step just call or email to discuss your scenario and let us show you the metroplex difference as always i want everyone to make a great day look forward to seeing you right here for the next tip of the week

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How does a legal separation affect USDA qualifying? By Metroplex Mortgage Services