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Is it acceptable to use community property income to qualify an applicant if the applicant is applying for separate credit?

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Question: 
Is it acceptable to use community property income to qualify an applicant if the applicant is applying for separate credit? Our applicant (Mrs. X) works for her husband's business and is requesting a $100M unsecured line of credit for herself and a small business she operates. Her husband, who earns the majority of income of the household, is not a co-borrower or co-signer. Based on Mrs. X salary' alone she would not qualify for this loan under our underwriting requirements. But, if we use the combined income of Mr. and Mrs. X and use their combined annual expenses (included the proposed loan), she would qualify. The argument is community property income can be used to qualify an applicant because she lives in a community property state (California).
Answer: 

I cannot speak to CA laws. But I recommend investigating a similar opinion that I have read in Texas. That opinion said that future income of a spouse is not community property. While the debt may be deemed community property based on who receives what benefit, all future income is not obligated to the community.

First published on BankersOnline.com 04/07/03

First published on 04/07/2003

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