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Mortgage Include Spouse's Income Without Being on Loan

Are there mortgage programs that allow you to include a spouse's income without the person being on the loan?

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

For all loan programs, if an individual is not listed as a borrower on the mortgage then their income is not included in the loan application.  If you want to use someone's income to qualify for a mortgage, they need to be on the mortgage and responsible for the loan.

The HomeReady Mortgage Program, however, allows the use of income from non-borrower household members as a supporting factor for your application. This is income from a relative who resides in the property but who is not listed on the mortgage.

For example, a spouse's income may be considered by the lender and used to boost your application even though the spouse is not listed as a borrower on the loan.  This approach usually makes sense if a spouse's credit score is too low to qualify for the loan or if they have high monthly debt expense.

Review our HomeReady Mortgage Guide

Although income from the non-borrower household member, the spouse this case, is not added to the applicant's income, it can provide a helpful nudge if a mortgage application is on the border in terms of being approved. Additionally, using the spouse's income as a supporting factor may allow the lender to use a higher debt-to-income ratio which increases the mortgage amount you qualify for.

Please note, however, that despite this extra help, you typically qualify for a smaller mortgage amount on your own than if you apply for the loan as co-borrowers and your spouse's income is included. We should also highlight that because your spouse is not listed on the mortgage note, you are solely responsible for the loan.

The HomeReady Mortgage Program is offered by participating lenders. I recommend that you contact multiple lenders in the table below to understand how they would handle your unique situation as program availability and qualification guidelines vary.  Shopping lenders is also the best way to save money on your mortgage.

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Current Mortgage Rates in San Diego1, California1 as of November 25, 2020
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Data provided by Brown Bag Marketing, Inc. Payments do not include amounts for taxes and insurance premiums. Read through our lender table disclaimer for more on rates and product details.

You can also use the FREEandCLEAR Lender Directory to search over 3,900 lenders by state, type and loan program. For example, you can search for top-rated lenders in your state that offer the HomeReady Program.

MORTGAGE LENDER DIRECTORY
MORTGAGE LENDER DIRECTORY
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Sources

"HomeReady Mortgage Product Matrix."  Mortgage Products.  Fannie Mae, December 7 2019.  Web.

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About the author
Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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