COMMUNITY PROPERTY STATES
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O Arizona
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California
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Idaho
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Louisiana
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Nevada
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New Mexico
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Texas
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Washington
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HOW DOES LIVING IN A COMMUNITY PROPERTY STATE IMPACT OBTAINING A MORTGAGE?
WHAT IS A COMMUNITY PROPERTY STATE?
A community property state is a state where married couples own assets and debts jointly. This includes debts acquired during marriage like a mortgage even if the mortgage isn't joint.
HOW DO THEY IMPACT BUYING A HOME?
A spouse might not be on the mortgage, but their credit report will still be pulled and their debts will be added to the debt-to-income ratios of the mortgage borrower. This only applies to FHA and VA mortgages, not Conventional loans.
WHAT HAPPENS IN THE EVENT OF A DIVORCE?
Community property laws require that assets and debts acquired during a marriage are considered joint property and are usually split evenly between spouses. This can include earned income, personal property, retirement/savings accounts, inheritances, vehicles, real estate and much more.